GBPEUR rates continued to fall yesterday as rumours spread that the Europeans could lower their interest rate further in an effort to boost growth. As regular readers will know, Europe’s banking crises seems to be getting worse, not better. This all after over 4 years of plans and discussions nothing significant has been released that has changed its fate. Only last week members from Moodys (international credit rating firm,) said that the Eurozone crises “is at best only half way through.” Bond markets, which are a barometer of confidence in a countries outlook, have also been climbing in both Spain and Italy. It was down to these two factors that rates pushed to a fresh highs a few weeks ago.
Tomorrow we have a number of Bond sales in Europe that will give us a better idea on the new market confidence being talked about. Both of which are expected to fall which as a result could give euro sellers an opportunity to take a better price. Reactions to the sale will be shown in the currency market within minutes so make sure you are in a position to take advantage if you are in that situation – Contact us today or email me at [email protected]
In summary if I was selling euros I would hold fire and jump ship tomorrow, if I was buying this week I limit risk and buy today. The data due within the next 24 hours could easily move markets and I would expect no less than a cent movement in either way, probably in the favour of euro sellers! This would make a difference of £850 for every £100,000 exchanged.
For a more focussed strategy for your situation feel free to contact us and we can happily give you some pointers on when to potentially complete your exchange.
Call us on 01494 787 478 to talk this through if it is of interest or email me at [email protected]