This week the GBPEUR has been relatively quiet will less than a cent movement from high to low. (This still equates to a £1,100 saving on a €150,000 purchase when timed correctly.) The biggest news was the GDP figures released yesterday which showed that the UK economy in last 3 months grew at twice the rate of the first 3 months of the year. It also was the first time that we have seen two consecutive quarters of growth in the UK since 2011. However many people still ask me:
Why is GBPEUR rate not higher, not over 1.20?
Well the facts still remain that the UK is still not in great shape. Even though there is a “feel good” factor in the UK due to the recent good weather and sporting wins the economy is still doing rather poorly. Unemplyment is still very high, wages are still shrinking against inflation, forecasts are for inflation to continue to get bigger, and, nation debt levels are still growing (I know recently the government are saying it is shrinking but what they mean is that it is not growing at the same rate as it was, the deficit is still growing!) Plus our global partners are still not growing either; Europe who are the UK’s largest trading partner is still struggling.
It all points towards the Bank of England needing to stimulat the economy more which means more QE. This could be as soon as next week however tradionally August is normally a month with no change as Europe clossed down so realistically we are looking at September.
When should I buy my currency, buy euros, buy pounds?
It all depends on the amount you are trading, the time frame you have, the avalibilty of funds and the risk appitete you have. Here we have access to award winning exchange rates along with tools to help us time trades, see potential Spikes and maximise the market for our clients. So if you need to move funds and want to know how we would approach it please feel free to get in contact, send me an email at [email protected] or via the phone by calling me on 01494 787 478. I will be more than happy to explain how our services work and why I am confident I can save you money.
01494 787 478