Currency market latest – More doom and gloom for the Pound? The Bank of England certainly are not helping! Capital flight in full force to the Eurozone (Daniel Wright)

GBPEUR Rejected by 1.17 Price Level Again

With reports of a huge capital flight back to the Eurozone as investor confidence increases along with the view that the worst is over, what now for Sterling exchange rates?

What does not help is the new Bank of England Governor Mark Carney has also now indicated he may take an aggressive stance with more QE when he takes the reins in July.

The latest news

The Financial Times is reporting today that a huge capital flight back to the Eurozone is occurring which it part of the reason that we are seeing such big shifts for the GBP/EUR rate at present.

The problem those of you that are waiting for a recovery for the pound against the majority of major currencies have is that there are few indications that we will see things turn around in the near term unless we see some big news soon.

Economic data for the U.K throughout January was particularly poor to say the least and it just feels like the bank of England are only too happy to see a weaker Pound at present which certainly does not assist those of you with large upcoming transactions to make.

It is very easy in this situation to just keep waiting for the market to move back in the right direction however hope is not something that can move the markets so you do need to look at your options extremely seriously as deadlines loom.

There are options available if you don’t have full availability of funds, you lock into a rate of exchange for the future with just a small deposit.

If there is a particular trading level you are looking to achieve you can place a limit order – Meaning if your required level is achieved at any point 24 hours a day 7 days a week even for a second then your currency will be bought out automatically for you – There is no cost to place this order and as long as it has not filled then it can be canceled or amended at any time.

We have a fairly quiet week on the data front this week, the most notable is Non-Farm Payroll data for the States on Friday which can affect all major currencies as it will effect investors attitude to risk, this is at 13:30pm on Friday.

Transfer to carry out?

If you are one of my regular clients then do feel free to get in touch with me directly and I shall be more than happy to book out a rate, place an order or monitor the market for you over the week.

If you have not used me before yet have a currency transfer to carry out it may be prudent to consider your options and ensure that you have a proactive currency broker on your side. If you currently do not use a currency broker or you feel you could get a better price or level of service than you are currently getting then by all means feel free to email me directly and I will be happy to personally help you for any requirements. You can catch me on [email protected] and i look forward to hearing from you.

Twitter: @currencyinfo

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