Sterling sellers have been dealt a good hand this week as the currency has recovered quite substantially since hitting a yearly low earlier this month.
From that low of 1.2320 we’ve seen GBPEUR surge up to a peak of 1.2685 during today’s trading session. Personally I think this weeks market movements are significant because when we look back at recent trading patterns between GBPEUR, the 1.26 level is key as it served as a support for around two months as the pair were locked between 1.26 – 1.30, and once that level was breached it appeared that it would act as a resistance although this weeks trading session would suggest otherwise.
These gains are mostly due to an improvement in risk sentiment as oil has trimmed most of it’s losses from earlier in the week, this coupled with news that the latest Brexit polls are showing a shift in favor of remaining in the EU has been welcomed by the markets.
My personal stance on GBPEUR is bearish as we get closer to the EU Referendum of June the 23rd, and I don’t expect these recent gains to remain intact therefore anyone with a GBPEUR requirement may be wise to consider taking advantage of what could be the last buying opportunity at these levels, before the potential ‘Brexit’ really begins to enter the tabloid headlines.
Thursday is an important day on the financial calendar this week, as the Public Sector Net Borrowing figure for march is due for release. This figure details the new debt held by the UK government, and with the UK having one of the largest financial deficits in the developed world, it’s likely that this figure will be held under high scrutiny.
If you are planning to use GBP to buy a foreign currency it may well be worth your time getting in contact with me (Joseph Wright) on firstname.lastname@example.org in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.