The pound could be in for another rollercoaster ride today, as investors will learn of Liz Truss’ latest plans for the economy ahead. Delivering her speech on the closing day of the Conservative Party Conference, markets will once again get to deliver the verdict on how it feels the Government is doing.
Sterling has made a very impressive rebound from the recent lows, with GBPEUR back over 1.15 and GBPUSD 1.12 in the last 24 hours. If we forget last week, these rates are near the bottom ranges of where sterling had been trading in September.
However, last week’s absolute lows make 1.12 on GBPUSD and 1.15 on GBPEUR look like some very attractive buying rates for sterling holders.
GBPEUR levels hit 1.07, that means on a £200,000 purchase of Euros, you would at yesterday’s highs achieve an extra €16,000. For a £200,000 purchase of US dollars, you would be receiving an extra $18,000 in the same equations using rates of 1.03 to 1.12.
Such dramatic rises and falls are rare in the FX markets, but do happen and remind us of how the unexpected can occur, triggering excessive movements.
The unexpected nature of the FX markets is one of the key reasons to be prepared when considering and desiring to purchase at a better rate. Simply saying ‘I want to wait until the rates gets to x or y’ is not always the best plan.
This is because, if you are trading on a large amount of money, you will often have to take some extra steps to be ready to buy. You will then also have the problems of whether or not you are truly getting the best rates of exchange, from a competitive source, that allows you to maximise your exchange.
If you have a currency exchange to make, and wish to ensure you have all the correct information about the FX markets to make a decision, please feel free to contact mw to discuss strategy.
I have worked as a FX dealer for 13 years, and can provide market insight and information, to help you make an informed decision with regard to buying or selling the pound. So, if you are looking at business payments, buying or selling Euros or USD (or any other currency), or maybe you have a property investors looking to repatriate funds from overseas, please feel free to get in touch for a balanced assessment of the outlook, your options and to benchmark any currency rates offered.
Thank you,
Jonathan