We have gotten used to seeing massive swings in a single direction over the past few months. Even over the past week massive jumps against the pound have become a regular occurrence. The swings last night and this morning are an indication that that market is in a state of panic.
Limit orders on very large positions are being filled at 1.40 as Euros buyers are worried that rates have peaked, whilst 1.375 seems to be the limit order for Euro sellers trying to capitalise on a bad situation. Creating this yo-yo effect that has left many confused on a day which was meant to be quite quiet in terms of economic data.
The trend before this was Euro strength, I believe when the markets have calmed down this trend will continue. Data shows the Eurozone has begun to recover, and that Draghi’s plans to revitalize European inflation and exports is ‘on-track’. A rare term for any financial process of this scale.
Those with Euro requirements, buying or selling, should call into the trading floor tomorrow on 01494 787 478 and ask for Joshua. I will help you to ride these highs and lows before the weekend. Alternatively we can discuss any long-term plans you may have. [email protected]