Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Pound Sterling rates when buying £200,000 at the high and low points over the past month:

Currency Pair% ChangeDifference on £200,000
GBP/EUR2.4%€5,400
ECB hints that QE could be coming to an end

GBPEUR rates hit near 14 day high

Buying Euros with Pounds has become cheaper this week with the GBPEUR rate now sitting towards the best levels seen for the last 10 days. A great opportunity that many have been taking advantage of.

The reason why there has been this rush is that most think that this is a short term opportunity rather than a long term trend. Euro strength has continued to be seen and the single currency remains the strongest performer between the majors this month.

Over the last 30 days the Euro has gained by as much as 3.5% against Sterling giving Euro sellers near to an additional £7,250 on a €200,000 transfer if timed wisely.

The reason for this gain is the continual improvements in the EU’s economic data across the whole block. Many have come to the conclusion that their Quantitative Easing program is starting to provide a real gain and has created this positive momentum for the currency. This has been further confirmed as the ECB (European Central Bank), has openly discussed their hopes to slow down the level of investment they are making into the economy. As this story continues I expect this to continue to help give the Euro value a boost, making it more expensive to buy, especially if the ECB talks about this further in their meeting next week.

Hiccup for economic data expected

Later today we have the next update on economic data for the Europeans. Industrial confidence is released at 10 am this morning along with a general sentiment survey. This will be the market mover for GBPEUR traders today and currently the market expects a fall to be seen, therefore weakening the Euro. This I believe has been priced into the market this morning meaning the gains expected are available now.

On the release later, if confirmed positive I expect the rates to move up slightly but I personally would not take that chance. If these expectations are missed and the data is strong, like so much data for the Europeans recently, the Euro could gain significantly. In summary, late morning today I think buying Euros will either be slightly cheaper or a lot more expensive. With rates at their highest levels we have seen over the last 14 days I would not take that chance. Euro sellers however may well want to wait until after this release.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

News

Read more articles
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.