Well I had mentioned at the start of the week that today would be the day to watch out for and it certainly did not let us down.
I started the day with a full order book of clients wanting particular rates of exchange and a large majority of them managed to achieve just what they were looking for.
The GBP/EUR rate had a high/low range of over three cents, GBP/USD 2 cents, GBP/AUD and GBP/NZD almost 4 centsand GBP/CAD almost four and a half cents.
The European Central Bank was the main focus and from the interest rate decision at 12:45pm onwards the market went completely bonkers.
The ECB actually made a cut to deposit rates and added the their QE program, this led to Euro weakness for a short period of time, in all honesty it did then look like this may be the trend for the rest of the day…. then head of the European Central Bank Mario Draghi started to speak at his press conference.
Draghi came out with extreme confidence in how things are going and shocked the markets by confirming that he did not feel that anything further would be needed after this latest move. These comments led to a huge turnaround for Euro exchange rates and the Euro managed to claw back three cents in a could of hours which is a huge disappointment for those looking to buy an overseas property or businesses looking to purchase goods from Europe in the coming weeks or months.
Because of the huge surge for the Euro, a lot of money came out of the Dollar so the Dollar weakened quite significantly as EUR/USD is the most traded currency pair in the world.
On top of this, we saw a huge impact for the commodity currencies as global attitude to risk altered and the AUD, NZD and CAD all weakened off, creating a great opportunity for anyone looking to send money over to these countries in the near future.
Tomorrow should be a little quieter on the markets as there is a lot less out in terms of economic data but you must be aware that the market is always open to a surprise or two popping up.
Here at Pound Sterling Forecast we do not only help clients with market information but all of us work for one of the largest currency brokerages in the U.K. We like to work on behalf of our clients and generally act as their eyes and ears on the markets, whilst ensuring that we get them access to the highest level of exchange rates hat we can. It is extremely rare for us not to significantly better a banks exchange rate or to beat any other brokers exchange rate and we like to think our customer service is second to none.
We have a range of contract types inclusive of a forward contract, limit order and stop loss contract to suit your needs, all of which at no extra cost to you.
If you have a currency exchange to carry out in the near future involving buying or selling the Pound, no matter if you are in the U.k or not then it is well worth getting in touch with me (Daniel Wright) personally. You can call me during our trading hours of 08:30am – 18:00pm or email me directly on email@example.com with a description of your needs and i will be happy to get back to you as soon as possible.