Tag Archives: GBPEUR exchange rates
Sterling continues to lose value as financial markets go into turmoil. Since markets opened this morning the Pound is already 1.5 cents down against the Euro and looks set to continue sliding. Stock-markets in London opened 3% down already, with value evaporating rapidly.
Panic concerning the Chinese economy has caused a mass sell-off of shares, as investors are nervous that their assets will continue to be devalued. This atmosphere on the markets has completely changed the outlook for raised interest rates in the UK and US economy. Raising rates when it will be difficult for banks to make returns on a weakening global market would be self-destructive behaviour. Furthermore, low rates are considered a buffer against negative external market forces on a domestic economy, encouraging people to spend and keep the economy running from the inside.
Much of the recent run of Sterling and USD strength has been based around this accepted fact that they will be the first nations to raise rates in the Western World since the financial crash. This spanner in the works has likely added another 6 months/1 year to the timeline. Sterling’s value has deflated, and the Euro has benefited from investors moving away from Sterling and the USD searching for short-term returns.
I would strongly suggest those with Euros to buy over the next month to get in contact immediately for a free quote on their transfer. We will likely see 1.35 on the markets by the end of trading this morning, and this situation in China is not a short-term phenomenon. Call me on 01494 787 478 and ask Joshua – quote this article to receive a free quote on your transfer and tailored advice for your own situation. email@example.com
The pound is in for a very busy day with a number of key releases mainly from the labour market with UK Unemployment data due. This release actually rose last month and could be a cause for concern. If we see a further increase sterling might really come under some pressure owing to the weaker economy. All in all if you are looking at making a transfer buying or selling pound sterling an awareness of all of your options well in advance is usually a good idea. If you need to make a transfer how do you know you are getting the best rates? Speak to me to find out by emailing firstname.lastname@example.org
The next thing to beware of on exchange rates is very much likely to be this Chinese news with the Chinese central bank cutting their pegged level to other currencies. This has presented much uncertainty into the forex markets with a major sell off on the Aussie and Kiwi presenting a very good time to buy these currencies with the pound. The volatility of the last 48 hours just shows nothing should ever be taken for granted on exchange rates!
For more information on your options and how to navigate the uncertainty please speak to me Jonathan on email@example.com