Good morning readers,
The sterling exchange rate is down by 0.2% against the Euro trading at 1.2103 as a write. I have had lots of clients asking me recently will this run on the Euro continue and what level may we spike up to over the coming month or two. To crystal ball gage can be extremely difficult and if I had the true answers I would not be writing here this morning but would be sailing round the Caribbean or south Pacific on a £100 million yacht. The best thing that any client can do is look at hard facts and I have been looking at the history of GBP/EUR over the last 3 years or so. It makes interesting reading.
It seems that every time the pound has reached the early 1.20’s it has hit a resistance level and come crashing back down. See what you think.
November 2008 rate 1.21 1 month later GBP fell 15.7% to 1.02
June 2010 rate 1.2251 1 month later GBP fell 4.3% to 1.1721
August 2010 rate 1.2250 3 months later GBP fell 8.7% to 1.1184
January 2011 rate 1.2069 4 months later GBP fell 8.3% to 1.1057
January 2012 rate 1.20………………..?
As you can see the collapse of sterling has remained in a very volatile range between 1.02/1.23 over the last 3 years. Predicting the future currency movement can be difficult and sometimes we have to take a step back from looking at economic data and take a look at what has happened in the past to give us a good insight into what may occur in the future. The above is hard facts on what has happened between the currency pair and I will let you make up your own mind as to what may happen next?
Who knows if the pound will follow the same course as it has done in the past, but if you can secure your Euros in the late teens or even just the right side of 1.20 it has to be worth considering. You do not want to get caught out holding out for a cent or so higher to then trade at the last minute in the early teens. Depending on the volume that you are exchanging holding out for slightly more could end up costing you thousands. I have seen this happen to many clients over the last few years with the pounds demise.
I thought our regular and new readers would find this interesting and if you have an up and coming exchange to carry out then please do get in contact with us as we have numerous tools to help assist you in maximising your currency conversion. just contact me at firstname.lastname@example.org ask for Ben and quote PSF
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I look forward to speaking with you.