As my article on Sunday mentioned, the Pound was expected to perform well this morning and did not disappoint, with gains seen against all major currencies – in particular for buying Euros and Dollars.
Speculators on Friday afternoon have been pulling the floor from under the Pound as they scramble for a stable currency to store their profits in heading into the weekend. Of course, the Pound has bot been high on their list of stable currencies and as a consequence the severe fall on demand for Sterling sees its value plummet.
However, similarly like clockwork we’re seeing GBP/EUR and GBP/USD levels rise as markets re-open on the following Monday as the vast majority scramble to buy Pounds due to their sudden cheapness. In this period of the week rates have rarely been so predictable.
Moving forward however my article did note some potential red flag events – particularly for Euro buyers.
Firstly, news concerning business confidence figures in the Eurozone are to be released tomorrow morning. As the Eurozone has essentially vacuumed up most of the foreign investment the UK has lost in the run up to Brexit and following the Leave result in the vote, the figures are expected to be very positive for the third consecutive month. It’s hardly surprising given that credit is so cheap and their foreign investment is up 300% on the same time last year.
With a fresh bout of Euro strength expected to come tomorrow at 10am, Euro buyers may be wise to seize some of the gains made today first thing in the morning to avoid what could be a difficult week for the Pound – especially given that underwhelming UK growth figures are expected to be released this Friday.
USD buyers however may be presented with some opportunities in the short-term, as tomorrow afternoon US housing market figures are forecasted to show a contraction – a likely result of their recent rise in interest rates. Expect a cheapening of the Dollar tomorrow afternoon. But again with UK growth figures on Friday we may simply be subjected to a small window of opportunity.
With this in mind I recommend that anyone with an upcoming Euro or Dollar purchase should contact me on email@example.com or by filling out the form below to discuss your currency requirement and develop a plan of action to truly maximise your return.
I have never had an issue beating the rates of exchange offered elsewhere, and I endeavor to produce a proactive service for my customers to make sure they are kept informed and up-to-date with market movements and expectations, rather than lagging behind.
As our regular readers will now full well, rates of exchange on any particular day can be fixed to allow purchasers to pre-book their currency for a later date, allowing any upcoming pitfalls to be avoided.
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