We are currently on the brink of the best levels to sell Euros since October 2011. We have seen seven consecutive days of Sterling losing ground against the Euro, despite a short term gain yesterday afternoon for the Pound.
As expected UK and EU interest rates remained unchanged, both at 0.5%. There were also no provocative statements from either Mark Carney at the Bank of England or Mario Draghi at the Europen Central Bank. More often than not it is the statements that move the markets!
Looking forward there is Producer Price Index for Europe at 10:00 this morning which could impact the market, should we see a solid loss or gain.
I believe that Sterling strength is only ’round the corner’. Therefore if I were holding Euros I would look at taking advantage of what are as previously mentioned, almost record lows for the last 3 years.
Euro buyers may look to take advantage should we see a move in to the 1.16s. I don’t believe that we will see the post-Cyprus levels of 1.18 for a fair while yet, as the UK economy needs to convince the rest of the world that it is stable!
Please drop me a line if you have any questions!
01494 787 478