After a great run of strength recently the future for GBPEUR levels have certainly changed. Markets reached a peak at 1.4250 and are now already 6 cents lower closer to 1.36. The uncertainty from the UK election is widely expected to cause further losses for the Pound as the political change impacts Sterling value. Rates never move in a straight line as regular readers and traders will be aware, from a day-today basis levels are driven by micro economic events. These are anything from Unemployment to inflation data for respective economies. There are a number of these reports this week but most are expected to show a fall in comparisons to last months highs, so GBPEUR rates are expected to fall in a straight line for the next few trading sessions.
What is also worth noting is that the central banks are starting a war on words. They are each targeted to make their respective economies as productive as possible with sustainable growth. Both the UK and Europe are very vocal about their respective economies growth and therefore values. It is a very cheap way of changing the value of their currencies. Mario from the ECB spoke yesterday and the BOE head is scheduled to speak on Friday and this is certainly an event to keep a watchful eye on.
My personal view is that GBPEUR levels are certainly more likely to fall further, I expect rates to fall in a big way over the next 6 weeks and would really stress people that are holding out with a hope for the 1.40’s to return to bite the bullet. Try not to be short sighted, levels at the moment are still at record highs if you ignore the last 2 months. If you think levels are going to climb and you want to wait, do so because you think something is gong to happen to strengthen your situation, don’t just rest on a wish when you are gambling your hard earned money.
For more information or my personal view on your situation feel free to get in contact. Email me directly at [email protected] or call and ask for myself Steve Eakins.