The EUR continued its dramatic rise against GBP, pushing through the 1.21 barrier during Friday afternoon trading. These levels have not been seen since April 2011 and depsite recent claims that the eurozone economy would continue to struggle in 2013, many will view this as a turning point for the single currency.
The reason for this spike can be atrributed initailly to Mario Draghi’s monthly press conference on Thursday, where he painted a picture of a eurzone that was healing itslef. The markets reacted to this and the Euro strengthened by almost a cent. What was more surprising was its continued run against Sterling on Friday, where it moved another cent, breaking through the 1.21 resistance level. Further negative reports of UK production data and a prediction by the NIESR that the UK economy has contracted by 0.3% in Q4 has only added to Sterlings woes.
Personally I would head a word of caution as the EUR has a nasty habit of relinquishing such positions. On a 200,000 EUR/GBP transfer on Friday afternoon you would be making an additional £2,500 compared to the same transfer on Thursday morning and to me that is an opportunity to good to miss.
Here at Foreign Currency Direct plc we have a variety of contract types all tailored speciffically towards our clients needs. Two of our most popular contract types are the option to forward book, which can eliminate any future negative market movement and limit order contracts, wherby you set your desired level into the market and once it reaches those levels your contract will automatically fill. If you would like to find out the type of exchange rates we can offer, or would like to be kept up to date with market movements then please feel free to contact me directly at [email protected] or on 01494 787 478.