When should I buy my Euros? (Tom Holian)

GBPEUR Levels Back Near the Recent Highs as Investor Concerns on the Euro Heighten

After several months of strong UK data and a surprise rate cut by the European Central Bank earlier this month, sterling has touched the key 1.20 interbank level several times this month.  The problem for many buyers is that 1.20 provides a key resistance level to the pound simply because of the number of market orders large financial institutions place at this level- the more they buy at this level, the more expensive the currency becomes due to the demand, and the rate drops back creating an artificial ceiling.

The next ECB rate decision is due out next week, and it remains to be seen if Mario Draghi & Co can talk down fears over the Euro.  I expect there could be a lot of volatility and if the pound can break this key level buyers may want to be in a position to move very quickly.  Unfortunately for sellers it could be a sign of worse to come unless this ceiling holds and causes the pound to fall back slightly.

If you need to buy Euros feel free to contact me for a free quote Tom Holian [email protected]