As a specialist currency broker for one of the UK’s leading currency brokerages I am very experienced in dealing with both private and corporate client’s currency requirements. What I am often asked is ‘what is going to happen?’ and in working with the client I am always keen to point out they should be realistic about their expectations and not get too carried away gambling that things will move in their favour. By letting me know what you need to do I can then keep you informed of relevant movements so the transfer doesn’t become too expensive.
The current market is extremely volatile and unpredictable and even though Greece is dominating the headlines that does not mean the GBPEUR rate is just going to jump up to 1.20. Even if Greece left the Euro it is unlikely this would happen because Greece leaving the Euro will probably strengthen the Euro! Just in the same way when peeling potatoes you can cut out a ‘bad’ bit and still use them for cooking, a eurozone without rotten Greece will be more appetising to investors…
For anyone buying Euros you have this week seen quite remarkable movements and even if you missed the boat I pointed out earlier this week it is still worthwhile taking advantage. Any kind of resolution in this mess will cause Euro strength and I personally wouldn’t be suprised to see a big announcement this weekend and rates back in the mid teens by Monday.
I have seen many clients lose thousands of pounds because they held a blind hope that the rate would continue to move in their favour. The issues surrounding the Euro are very complex and in my opinion it is now more political than economic. We are now nearly a cent and a half down from Tuesday’s high yet still a good 2 cents up from Monday’s low. Despite the UK media treating the Euro situation quite negatively, the global markets take a different view, hence the relative and in my opinion expected continued Euro strength.
With the Greek saga set to continue this weekend and the G20 summit it may be of interest to you to at least be aware of and consider all your options in these times.
If you want more information about GBPEUR movements and what is currently happening, including how to get the best rates, feel free to contact the author directly on (+44) 01494 787 458 or [email protected]