Sterling Euro has had an exceptionally volatile afternoon moving over 3 cents between the high and low! I do not pity anyone having to make a decision in this incredibly difficult market. The expectations now are for the rate to recover a little and I would expect the market to remain a little more comfortable between 1.28 and 1.29. I find it very strange that Mario Draghi would cut their interest rate and then say that in fact they will not be cutting again! This is a very tricky analysis but I cannot help but think Mario Draghi is still not clear in his own mind about the direction of travel in the Eurozone and this is being reflected in the prices.
If you need to buy or sell Euros with pounds I would not be hanging around too long without making plans. The next big news is next week’s budget for the UK and then the EU Referendum later in the year. If you have a currency transfer to consider understanding all of your options in advance is the best way to limit your exposure to the markets. For further information on the uncertain weeks and months ahead please email me [email protected]