A day high of 1.425, with a day low of 1.407, and settling in the mid 1.41’s by the close of trading. Incredible movements in a single day, with numerous contributions to such violent swings.
The day started off with a speech by Mario Draghi, the head of the ECB, which was received poorly by the markets. He was asked numerous questions about the specifics of his Quantitative Easing program to revitalize a struggling Eurozone, which he seemed to have come unprepared to give! The specifics still need to be ironed out – it’s hard to give out the money fairly across all the countries, all with different requirements and all of whom contribute different amounts to the European governing budget. I’m sure he was worried to offend at the early stages of negotiations, and was worried about market repercussions. Well sometimes saying nothing is worse.
To the delight of Euro sellers this freefall of a few cents was reversed by the afternoon. A member of the BofE who regularly votes to raise interest rates came out as undecided now. Combined with lower revisions about British GDP, we saw a corrective pullback of over a Cent. It’s easy to forget after the past few months how mammoth a movement an entire cent actually is on the markets.
Those looking to sell Euros should take advantage of the corrective pull-back we have had today. There is little data out for the rest of the week to shine any kind of light on Euro Strength. I would expect rates to either stagnate or improve slightly for Euro buyers. Call into the trading floor from 8 30 am on 01494 787478 and ask for Joshua to discuss your specific requirements. [email protected]