The tension was palpable yesterday. Sterling continued to slide against the Euro, reversing trends we had come to enjoy and expect since the start of January. This has been reversed today. We have recovered fully up to 1.33 and those who saw the rates recently and got tempted have not missed out by not jumping on the purchase immediately!
The reason the rates have come back up are due to higher than expected date coming out of our Services sector. While many had predicted a contraction, the opposite was revealed. The sheer volume of capital coming out of the Eurozone has stimulated the amount of funds available to be processed by the financial sector and tertiary industries.
So these rates are a gift from the woes in the Eurozone, a secondary boost from the initial market drops at the start of January. Clearly the past few days have shown that the Euro can slide, by as much as 3 cents yesterday, and that is where the room for movement it. Although we recovered today, even fantastic data could not clear back into 1.34.
If you would like to discuss where these rates will be going, what primary factors will affect their future, and the different options available to you to take advantage of them, then email me on [email protected] and I can deliver some more tailored advice to your situation.