Friday presented itself as a relatively stable day until about 3 in the afternoon for anyone considering buying Euros or any of the various Dollars. However, unlike many who were winding down for the weekend, the currency markets provided a last minute spark in the closing hours of the day.
The Pound suddenly tumbled. Not just against the Euro, and various Dollars, but even the less heavily traded currencies such as the Rupee and Rand. It was severe and prolonged until the currency markets finally closed for the weekend and the Pound gained some respite.
There was no sudden news released to justify this, so Euro and Dollar buyers should not be worried that this is a trend which is likely to continue as markets open next week.
It is important to always remember that it is speculators who govern the currency markets. The traders at high street banks who often move 8-9 figure sums as part of their daily routine are the drivers who move the average buying and selling levels through their prolific activity. This is what changes the interbank level which many of our regular readers with an upcoming requirement with be monitoring on their screen.
On Fridays, and even more so on the last day of each month, you tend to see the phenomenon of profit taking. These speculators who had been buying and selling Euros and Dollars throughout the week must decide which currency to predominantly allocate their profits by close of play on Friday. Unfortunately, due to the recent lack of confidence in the Pound post-Brexit, it is very low on the list of stable currencies to consolidate those profits.
As such the sudden sell-off of Pounds on Friday contributed to a sudden drop in its value against all major currencies, with GBP/EUR, GBP/USD, and GBP/AUD all falling to their lowest levels since the first week of July.
With normal activity to begin next week I am expecting a recovery for Euro and Dollar buyers as the Pound becomes an attractive buying opportunity once more due to its cheap status. With increase demand its value should see a boost against its counterparts.
However, due to the release on Tuesday morning of UK inflation data, a traditionally poor performer and likely to be exaggerated in this post-Brexit vote landscape, this is likely to be short-lived.
As such Monday may present some more tempting opportunities than what was available late on Friday afternoon. I strongly recommend that anyone with a Dollar or Euro buying requirement should contact me on firstname.lastname@example.org to discuss how best to make the most of any such opportunities which emerge.
These opportunties may even be substantial due to the bank holiday in the Eurozone for Assumption Day, and the lack of activity in their own banks during the occassion.
You can also fill out the form below to be immediately contacted once markets open on Monday morning to discuss how best to make the most of the day’s movements for an upcoming requirement of yours.
You can also fix rates of exchange for future transfers, so a brief conversation could save you thousands on your transfer, and I have never had an issue beating the rates of exchange offered elsewhere.
Euro and Dollar sellers can also get in contact to discuss how best to maximse their Sterling return.
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