Good afternoon and sorry for the lack of posts lately….. with the GBP – EUR rates breaching the 1.20 mark and staying over and above it the other traders and I have been rushed off our feet with those looking to lock into rates and make that dream purchase abroad a little cheaper.
So, why has the Pound gained so much?
Against the Euro it has been more a case of Euro weakness than Sterling strength as the Greek problem still hangs around like a grey cloud and Spain appear to be following suit with rapid pace along with numerous other economies.
This in turn creates one huge problem….. With only one set of fiscal policies just where do the European Central Bank turn next? Obviously this has led to low confidence in the Euro Zone and whispers of the Euro not even existing going forward.
My personal opinion is that the Pound may well creep up a little more in the coming weeks as more and more cracks appear in Europe and the Pound just subtly continues creeping up.
Against the Australian Dollar the great recovery appears mainly down to the fear of a hung Parliament over there – remember what tht did to the Pound???
The election is not for months so should this become even more of a possibility then expect the Pound to make further gains against the AUD.
Sterling has seen large gains against the SEK,DKK,ZAR and numerous other currencies whilst staying reasonably flat against the Dollar and making slight losses against the CAD.
If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.