GBPEUR moves lower, have you made preparations for Thursday? ‘Be Fearful when others are Greedy and Greedy when others are Fearful’

GBP USD Picks Itself Up Off the Floor

If you are buying Euros or any other European currency with sterling the rates have again fallen today. Even with some better than expected Services data for January we have seen the rate drop. Today GBPEUR has moved from a high of 1.1689 down to 1.1510, which for me indicates more troublesome times ahead for the pound, particularly against European currencies.

Tomorrow we have Manufacturing and Industrial Production data which are not hugely important releases but may well be looked at closely as investors try to get a feel of how warranted the GBP sell off we are witnessing is. I would expect GBP to suffer in the morning and ahead of Thursday’s data. The pound does seem to be at a comfortable level against any currency breaking fresh lows against the US dollar and CHF today, as well as many others.

Could we see more QE? I think it is probably unlikley but the pound is likely to suffer Thursday due to the Euro being favoured. The really important part of the day will I feel be Mario Draghi’s speech at 14.30 CET. His comments that the Eurozone situation was ‘stabilising’ last month helped trigger the GBP losses as investors sold off sterling to buy Euros.

The GBP weakness we have seen is not solely to do with the dire state of the UK. Last year the pound found favour due to Eurozone uncertainty as the UK was considered a safe haven. Now the pressure in Europe is off investors are looking for better places to invest their money. Any of our readers with interests in stocks and shares will probably be quite happy with how their portfolio is doing this year. Shares across the globe are up due to a restoration of confidence as the worst fears of a Eurozone catastrophe are averted.

‘Be Fearful when others are being Greedy and be Greedy when others are Fearful’

This well known quote by the sage of Omaha Warren Buffett is often wheeled out during highs and lows. The sharp moves on the pound today and in the last few weeks highlight why no one should take their current rate for granted.

If you have a transfer to consider and would like to maximise your rate of exchange with the service of a specialist currency broker please feel free to contact me directly on [email protected] or call 01494 787 478, ask for Jonathan and quoting PSF.