In a not wholly suprising move the European Central Bank has cut the Eurozone Interest Rate to 1.25% from 1.5%. This 0.25% cut has given anyone still holding out for further gains from this week’s already extremely favourable movements that reason to trade. Monday morning the GBPEUR rate was at 1.1372, the high of 1.1691 touched Tuesday reflects the dramatic shift in expectations. Even with the rate cut we are still below that high touched Tuesday and I feel we won’t see any better time to trade this week. Moreover it is likely the G20 summit could cause Euro strength and make it more expensive to trade.
If you were looking to make a £100,000 transfer to Euros this week you would be getting an extra €3190 by trading at the high rather than the low. I have correctly pointed this out to many clients this week and they have traded and are very happy with the rate they received.
Buying currency can be a bit like gambling. Ultimately no one knows what the outcome is going to be. Therefore when things have moved in your favour and you have made some money – as for anyone buying Euros this week – it is very wise to take the profit. By gambling on things improving further you are risking the great exchange rates you have. Just like a gambler you may also find you that whatever improvements you get you always want more and then all of sudden when the rates drop you find yourself chasing the rate you previously ignored.
If you have any currency trades to make I can assist with the very best exchange rates. Why not try me? I have never had trouble beating not only the banks but also other sources so if you would like to discuss any of the issues surrounding your exchanges please feel free to get in touch on (+44) 01494 787 458 or e-mail [email protected]
I look forward to hearing from you, discussing your requirements and making sure you get the very best rate.