Buying Euro rates have seen their largest and most sustained gains since the day before the Referendumin June, reflecting just how positive the sudden shift in sentiment towards the Brexit has become.
Since Wednesday morning with the confirmation of a Trump victory,the Pound’s rally has shown movement in three days what has not been recorded, apart from the flash crash, in the space of two whole months of trading. Stagnation begone, there is life in the markets once more.
To summarise briefly why, this is due to the special relationship between the Dollar and the Euro. Given that USD/EUR is the most heavily traded currency pairing in the world, weakness in one currency tends to translate into strength in the other, as capital goes flying into the other currency in those situations – boosting its value through increased demand.
When assuming the mantle Trump gave his most measured, conciliatory and unifying acceptance speech. He almost appeared to have a split personality, and initial fears of him immediately railing about building a well and banning Muslims were replaced with an almost strange optimism that he may be more conciliatory than people thought. The Dollar strengthened as a result. This caused a run on the Euro to reach up to new heights of 1.16, but has since backtracked slightly.
With GBP/EUR still incredibly sensitive to political news, as always this market carries a hefty amount of risk alongside the potential for further opportunities, particularly after such a long dry-spell for foreign currency buyers using Sterling.
I strongly recommend if you have a buying or selling Euro requirement that you contact me whilst markets are closed over the weekend on [email protected] to discuss a strategy for your transfer aimed at maximising your currency return, and to hear the options open to you to safeguard your transfer from any adverse movements.
I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on an upcoming transfer.