GBPEUR rates have continued to climb this week, slowly but continually meaning buying Euros is the cheapest for 2 months. It seems to be driven not by an improving UK economy so don’t get any hopes up, but the drive for a safe haven from the Eurozone. Today Cyprus banks open and depending on whether there is a run on the banks there, it could very well spread to other banks across mainland euro putting more strain on an already struggling financial system. We have also seen risks gain pace in Italy as there are rumours of a credit downgrade, and lastly Spain amended their forecasts for 2013 to a econ economic contraction of 1.4% and unemployment rising to 28%. So you can see why investors are protecting their assets and moving funds out of the euro. The USD has also been a big benificary of this movement to safty.
So when will it stop, when do I buy?
Well following the EASTER WEEKEND when the UK is closed for both Friday and Monday, the UK pushes its economic releases into 4 days making it a busy time. So if you are happy rolling your requirements over the weekend and are not concerned about european contaigen we can look into the data releases next week and when the best to time your trade. Next week we see from the UK: Morgate Approvals, Consumer Credit, House pirce index, PMI construction, Interest rate decision, QE update, along with a few others…
Each of these can easily move the markets, the concern of more QE is high and one which could easily see rates fall by a few cents. My predictions for the next week is to expect rates to either climb by another 0.5 cent’s or fall by 2 cents.
Here we help in a multiply of ways:
- We have a number of tools to enable you to limit your exposure if you want safty over the weekend
- Here we can pro-activily help tim your transfer at spikes with SPIKE NOTIFICATIONS
- Or if you just want to secure funds, our award winning exchange rates should happily save you over 2% compared to the banks.
If any or a combination of the above are of interest get in contact! A quick conversation with me here could easily save you thousands. (Yesterday I saved a new client £750 on a transfer compared to another broker he had been using for years in the space of 15 minutes, a well spent quarter of an hour I would hope you agree?) Contact me, Steve Eakins on either 01494-787-478 or emial me directly on [email protected]