Yesterday the European Central Bank and the President Mario Draghi sent the markets into overdrive. The European Central Bank confirmed at 12.45 they would be cutting the Interest Rate from 0.05 to 0% and the deposit rate from -0.3% to -0.4%. Further to this the ECB confirmed they would be adding an additional €20bn each month to the Quantitative Easing program.
This led to investors selling off their Euro positions to buy other currencies which would lead to higher returns on their investments.
Sterling made significant gains against the Euro however lost ground against safe haven currencies such as the USD and commodity currencies such as the Australian and New Zealand dollar.
45 minutes later President of the European Central bank surprisingly shocked the market with his bullish comments. Mr Draghi confirmed the ECB would not need to make further cuts and painted a positive picture in regards to the economy as a whole.
This led to speculative traders revering their trades and investing back into the Euro. The Pound therefore plummeted against the Euro however made gains against the USD and commodity currencies such as the Australian and New Zealand dollar.
It just shows how important it is to have a broker working on your behalf when buying currency for a property or to pay company invoices for example. If you had managed to purchase Euros at the high point compared to the levels we saw after Mr Draghi’s press conference, you would have saved just under £4,000 on a €200,000 purchase.
My area of expertise is for clients that are looking to purchase a foreign currency with the Pound for a property purchase. It’s important to analyse both currencies, for example GBPEUR / GBPUSD, therefore if you would like to be regularly updated and receive the best possible rate email me with the currency pair and your requirement and I will email you directly with my forecast and the process of using our company [email protected]. Alternatively if you would like to discuss your requirements over the phone call me on 01494-787478 and ask for Dayle Littlejohn.