Sterling strength or will it continue to fall, buyers beware!

GBP EUR Exchange Rate: Weekly Review July 16  

As we reach the end of the month there are a few key data releases due that will drive GBPEUR rates this week. This includes CPI data
this morning which is expected to fall. Bank of England minutes tomorrow expected to be seen as negative and retail figures later in the week also expected to fall. So readers will probably come to the same conclusion as myself quite easily. If you are a buyer it may be wise to buy sooner rather than later if needed in the next week.

In the longer term the over shadowing story from Europe still lingers on. In summary concerns were very high a few weeks ago that Europe would fail. Greece would leave and there would be a run on the Spanish banks making them bankrupt within days, with the rest of Europe in  toe. This has been avoided however Spanish borrowing costs were still high. As a result they signed off, the ECB, a bond buying programme to increase demand for Spanish bonds pushing them down in price, releasing pressure on Spain.  This was offered and has gone through the German courts to confirm it as a possibility, however Spain are yet to call on it – Why not?

Well the reason for that is a condition of taking them will be austerity cuts and this is what many are thinking are being negotiated behind closed doors at the moment. So risks are high that at any point they could confirm that they are taking the bailout. I would expect this to increase confidence HUGELY in the euro and make it a lot more expensive. This is the over shadowing concern for any EURO BUYERS.  If you are in this situation I would be very very wary. Make sure you have limited your exposure with Limit or Stop loss orders – if you have not and would like more information contact us today and ask the question. We offer a no cost service that traditionally saves clients between 2%-4% when compared to the bank. What have you got to lose????

Contact us today on the normal number or feel free to email me directly at [email protected]

Thank you,

Steve Eakins