Both the Bank of England and European Central Bank kept rates on hold yesterday lunchtime, however the biggest story of the day came from head of the ECB Jean Claude Trichet, as he promised another rate hike in June.
Generally rate hikes, or the mere mention of them will strengthen a currency however it appears the markets had already priced this in well in advance.
The Euro actually lost ground over the course of the day as big traders took profits from positions as heads turned back towards the Greek debt crisis and how it would effect the Euro in the coming weeks and months.
I am writing this from a small island in Crete on my holidays (much deserved) and I can confirm that from speaking to many people around there are much further problems to come on this one and a lot going on behind the scenes that is still yet to come to light, if you are selling euros it may be extremely prudent to start looking at your options, a forward contract is one of them if you don’t have the full availablility of funds.
I won’t be back in the office until Thursday now, however if you would like to email me then contact me on [email protected] and one of my colleagues will get back in touch with you on my behalf, alternatively fill in the enquiry form on the righ hand side of this page and another experienced, friendly and professional trader from our floor will contact you to explain how we can save you potentially thousands over using the banks for your upcoming transfers.