GBPEUR forecasts still in questions
Yesterday was a large day on the markets as the European Central bank was scheduled to release details of its new Bond Buying program. However the clarity of the information given was far from perfect leaving many questions unanswered. What was confirmed was that they are going to buy 3 year bonds for troubled countries. Potentially now on an unlimited level. The theory of this is that this additional demand for the bonds will drive prices down. Making it cheaper for these countries to raise capital relaxing risk that they may need a bailout. The problems with this strategy is that it could be assumed that drive by the governments in trouble will failure as they know the central bank will help support this. As you can imagine the power houses across Europe, really Germany and France are not too happy about this and want fiscal plans to be implemented and followed through before this bond program goes forward.
So with questions in the air about what these will be, whether they are realistic or not, and importantly how will anyone that miss them be punished, leaves a lot of scenarios unanswered. Due to all this the currency markets did not move much yesterday.
So the question remains, when is the best time to trade in the currency markets?
Well I would say that it comes down to risk appetite and how much you are willing to lose. I personally would buy the euro sooner rather than later and would suggest sellers to hold out. The facts still remain, they need to support the euro and said that it will not fail, when this confidence comes back it will hurt any Euro buyers. When will this happen, potentially weeks but this is a story that will not be going away.
The next key dates for euro traders are next week when we have European Confidence, European Unemployment figures, UK Unemployment figures, and UK Manufacturing details. My estimate is that over the next 7 days we can easily see a swing of 2 cents. Making a difference of €2,000 for every £100,000 exchanged. If you are looking to maximise your trade and buy at the best price, keep reading this blog, or for a more pro-active service feel free to contact us either on the normal number or via email. My email directly is firstname.lastname@example.org, simply put if we could not save you money we would not be in business.
What have you got to lose other than a few minutes to compare your current provider…….