The EUR continued to strengthen against GBP during Tuesday’s trading, with rumours rife that the markets were starting to factor in a further round of Quantitative Easing in the UK. This annoucncement could come as early as Thursday, when the Bank of England will make a decision on whether to cut interest rates, in addition to any announcement of further QE. These decisions are seen as key to the next major move on the GBP/EUR currency pair and many people will be waiting for the outcome of this before deciding when to initiate their next currency transfer.
It is worth remembering that the markets will ususally start to factor in any major economic decisions before the actual announcement and the one thing we can be certain of is investors will do everything in their power to be one step ahead of the game. For this reason, it is often in the build up to any economic releases that the markets will move according to the likely outcome. This is not full-proof of course but it is why we may see the EUR continue to strengthen over the next couple of days and then find there is not much movement come any announcement on Thursday, assuming it has gone as predicted that is.
The EUR has been making headway since the start of the week, with rates moving back under the 1.25 resistance barrier and providing EUR sellers with an additional £1,300 on a 200,000 EUR/GBP, compared to the same transfer on Monday morning. This is a key indicator as to why it is so improtant to have a currency broker actively working with you to ensure you are maximising each and every transfer, no matter how large or small.
This market uncertainty can be difficult to digest, especially if you have an
upcoming property purchase or sale and are looking to transfer funds but are worried that market movements will ultimately leave you short changed. Here at Foreign Currency Direct plc we have multiple contract types all tailored specifically towards our client’s needs. One of our most popular types is our forward contract, which allows you to lock in an exchange rate even if you do not have the full funds available. This is perfect for anyone looking to eliminate risk from the market but still take advantage of our award winning rates. If you would like more information please contact me directly at email@example.com or on 01494 787 478.