We are currently looking at EUR/GBP & EUR/USD rates thinking how much stronger can the Euro get. Even when Spain showed that their GDP had contracted the Euro still continued to gain against the pound and USD. We have been reviewing our forecasts, as previously we stated that if the rate fell against the pound below 1.20 we felt there would be a resistance level of 1.17. Now that the Euro has been lingering below this level (1.1650) we feel the next test will be the 1.15 point. This is where many investors will have limit orders in the market to sell their Euros. How long it takes to reach this level is difficult to predict but the amount of sterling weakness across the board coupled with the Euro strength leads us to believe that this could occur. The pound may just surprise us and rebound so you should always be extremely cautious as things can turn around very quickly.
If you are planning on selling Euros to buy sterling the 5.5% movement in your favour since mid-end of December is a great return on your funds. If you were selling €200,000 now compared to 4 weeks ago then you would be achieving and around £10,000 more now. This is a fantastic return in the space of a month and I would imagine that most of you who have Euros to sell were more than likely banking on rates of around 1.23-1.25. If you want to capitalise on the favourable rates and do not want to take the risk with your funds then please feel free to contact me for a quote at email@example.com. We will always strive to beat any rates you are quoted by your bank or any other broker. Please leave me your contact details and I will contact you straight away to discuss the options that are available to you. Plus we will give you a very personal service which you just will not get from any bank.
This morning the Euro has been very range bound as Germany posted slightly better than expected unemployment figures. The data showed that unemployment dropped to 6.8% but the markets were expecting to see the figures at 6.9%. This should bring a little more strength to the Euro.
Potentially the biggest market mover of the day for the Euro could be in the form of German Inflation data out at 1pm this afternoon. Figures are expected to come out at 2% for the year and a drop of -0.4 % for the month. Should the data come out not as anticipated then you could find some volatility with the rates in the lead up to the weekend.
Should you have a requirement to buy or sell the Euro please do feel free to contact us for our opinion on the markets and the rates of exchange that we can offer. We deal with all the major currencies and you can find that savings over your bank can amount to as much as 4%
Thank you for reading.