Sterling exchange rates have strengthened against the Euro this afternoon by 0.70% spiking up to 1.1898. This is a gain of over a cent from Monday’s low.
Just as it was looking like the pound was heading in the wrong direction and all the signs were that the pound could hit below 1.17 the European Central Bank (ECB) unexpectedly provided a further €530 billion of low interest loans to 800 banks across Europe. The last time the ECB did this was in December and the Euro weakened at that time too. The cheap loans mean that European banks are flooded with cheap money and are able to invest in bonds in other countries. The cheap loans were oversubscribed and it has helped sterling exchange rates bounce back.
This move goes to show that, you can continuously follow the markets and wait for all the data releases under the sun to hit the market but the unexpected can move the rates of exchange when we least expect it. Trying to gauge the currency markets can be very difficult. We watch the markets all day long for clients and this move has increased the buying volumes for the Euro. There are now some excellent buying opportunities on Euro rates of exchanges. When there is a quick movement in the market we can help a client save thousands of pounds over the high street bank.
Please do contact me at firstname.lastname@example.org and challenge us here at Foreign Currency Direct/Pound Sterling Forecast to beat
the rates of your banks or current broker. We promise you that you will not be disappointed. We will also offer you our expert opinion on when we feel is a good time to execute a trade. If you let me know what your situation is I can go over the options that are available to you.