Tag Archives: EUR USD
With the volatility of the Euro in the last couple of weeks making the decision on when to transfer Euros very difficult, this situation has been exasperated by the Easter break. With the UK closed for business on Friday and Monday along with most European counterparts, but the US and Asia still trading, it also means the markets may still move whilst you are unable to do anything.
For example we see the release of US Non Farms Payroll Data released on Good Friday. This is a measure of all new jobs created in the US outside the agricultural sector in the last month, and is often used as a barometer for the US economy and global confidence. The better the figure, the more confidence investors have in the economy picking up and the more likely they are to take on riskier positions. This can have a big influence on EUR USD but will also move sterling exchange rates against the single currency as both move relative to the Dollar.
One way to deal with this would be to place a stop loss or limit order with your bank or broker to ensure that if the market does move dramatically during the holiday break, your order will still be bought at the level you decide if that price becomes available. If you wanted to achieve a rate of 1.2150 to buy Euros from GBP, but were worried the rate may drop below 1.19 by waiting, then you could place a limit to buy at 1.2150 and a stop at 1.19. This would mean if the rate spiked up, it would buy automatically at 1.2150 if that buy rate became available, but should things go against you and the rate actually drop sharply, then it would be stopped out at 1.19 if the market dropped to this point meaning your rate couldn’t fall any lower even if the market continued to.
Likewise if you are on a property viewing trip over Easter and want to be kept informed of any significant movements that may affect your property purchase, then by all means contact us for our rate alert service. 4 days is a long time to be exposed to currency fluctuation so why not get someone working with you. Our currency service is designed to help get clients the best possible exchange rate in an already competitive market. We do not charge hidden fees or commission and you only committ when you execute an order. If you are looking to buy or sell Euros (or any other currency pair) and would like to find out more about how things work, or compare us to your current provider, then feel free to e-mail Colm at email@example.com and quote ERF in the subject matter. It is free and will ensure you get the best deal on your transfer.
Sterling Euro exchange rates have been flirting with 1.20 for the last week with big spikes on Monday and yesterday. Much of the movement has been due to slightly better than expected data in the UK in recent months and continued trouble in the Eurozone with news like Spain’s missing its deficit reduction targets and Ireland re-entering recession. However it has not all been plain sailing for the pound against the single currency with recent retail figures significantly down it highlights the UK economy is by no means out of the woods, simply the tree line has got a bit thinner. The Bank of England Minutes reinforced this view with two members voting for an increase in the Asset Purchase facility (Quantitative Easing). In all I do think 1.20 will be achievable for clients as it has been earlier in the week but I don’t expect the pound to push on much further against the Euro because of the inherent problems in the UK economy. If you are looking for an exchange rate of 1.20 to buy Euros then why not look at a limit order. Get in touch by e-mailing Colm at firstname.lastname@example.org and quote ERF in the subject matter with a brief overview of how much you want to exchange and timescales. I would be happy to explain our trading process with no obligation placed upon you- just the ability to get a better exchange rate!
The Dollar has weakened against the Euro of late due to an increase in global confidence resulting in investors moving away from the safe haven of the Dollar and looking for higher returns elsewhere due to greater risk appetite. High oil prices and tensions in the Middle East have exacerbated the USD weakness due to US demand on oil – Obama did announce greater levels of oil production in the US but I think this slackening on the Dollar will remain as long events in Europe don’t blow up again imminently. As such trading around 1.32 to 1.33 for EUR USD however if you would like a level above this by all means let us know and on e of the team here would be happy to monitor the rate and contact you at the appropriate time. Simply e-mail Colm at email@example.com and quote ERF in the subject matter with on overview of the Euro Dollar trade you need to do.