GBPEUR rates continue to fall but why? (STEVE EAKINS)

GBPEUR rates have fallen dramatically over the last few weeks. Since the beginning of the year if has fallen over 3% costing anyone with a €200,000 purchase £5,000 more. Why?

Well simply put the world is a very different place in 2013 compared to 2012!!!!!  Last year there was a concern that the Eurozone would not last most weekends whereas now there is no concern.  This has dramatically changed the risk appetite of traders and GBPEUR buyers have been some of the worst hit.  The reasons why:

  1. Firstly as people are comfortable to take risks they buy the euro and this demand is making it more expensive to buy in any currency.
  2. The pound was at the end of 2012 seen as a safe haven and was invested heavily, this has now changed so people have been selling the pound buying other currencies. The pound is no longer in demand which is making it weaker on the currency markets.

The outlook for the pound in the short term has not changed either, it all looks fairly concerning. We have UK unemployment figures tomorrow, 10,000 jobs are already at risk on the UK high street due to failing retailers so the expectation is poor. On Friday we have UK GDP figures and this is expected to show a weak negative figure. This means the UK was only
out of recession for 1 quarter last year and makes it a real possibility it could re-enter. This would make the UK the only country in the Western World to go into a TRIPLE DIP recession and does nothing to make the currency any more enticing for investors.

This all builds a poor picture for the early part of 2013.  So what do you do if you need to buy euros?

Well I would be limiting your risk, using stop loss orders and keeping a close eye on the markets as there will be better times than others.  Here we provide a proactive service helping you trade at the high of the markets plus offering AWARD winning exchange rates.  Simply put if we could not save you money, even in this expensive market, we would not
exist.  Get in contact to compare your current prices and see how much you could save.

If you would like updates on the market, register your interest by emailing your situation (contact details, currency pair, volume and timeframes) to [email protected]

Thank you,

Steve Eakins

Elite trader

[email protected]