A spike is when the markets move very quickly to price in new information, it attracts day traders who artificially increase demand and push levels high. A spike is normally the best time to buy but it is always a balancing act as at some point these traders will sell off their position, taking profit and therefore we see rates drop back down. I would expect we will see this through the course of this morning meaning anyone looking to buy funds should potentially be looking to move sooner rather than later.
The other thing to consider is the European Central Bank meeting which takes place this afternoon. The Bank of England is also meeting but I expect that to be a non-event, all eyes are on Europe. They are expected to give further clarity about their potential expansion of their QE program to include government bonds. This is a massive event if confirmed and will have a lasting impact on GBPEUR rates for months, something that if you are in the market you should be keeping a very close eye on.
For a full break down of today’s market and forward forecasts please get in contact, you can telephone in on the normal number or for a personal approach feel free to contact myself directly through email at [email protected]