With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. Click here to see live foreign exchange rates.
Below you can find GBP/EUR movement during the last week:
|Currency Pair||% Change||Difference on £200,000|
The Euro is currently the best performing currency in the G10 complex in this current month and yesterday the charge continued.
We have seen the Euro gain 2 cents against Sterling and more than 2 cents against the Dollar this week, as investors and speculators raise their expectations that the European Central Bank may look to start tapering their QE program soon.
The next ECB monetary policy meeting is on June 8th, conveniently at the same time as election is held in the U.K so we may see an extremely volatile period for those that have a Euro requirement in the coming days and weeks.
Quantitative Easing is essentially printing more money to give an economy a shot in the arm, it is generally seen as negative for an economy /currency so the fact that there is a high chance that the ECB may look to taper (or cut down) their volume of QE suggests that they are happy with the way things are going and this should make the Euro stronger or more expensive to buy.
We do have a fairly quiet week ahead in terms of economic data for the Eurozone but as we have already seen so far this does not mean the exchange rate will remain quiet for the rest of the week.
For those that are interested, we do have the ECB monetary Policy meeting accounts at 12:30pm today and President of the ECB Mario Draghi is also due to speak at 18:00pm this evening, any comments on tapering that I mentioned earlier in the report may lead to quite a lot of overnight movement.
If you have a large currency exchange to carry out involving the Euro it may be worth contacting us today to discuss a limit order. A limit order is where you can set a particular rate you wish to achieve and should that rate become available at any point 24 hours a day then our systems will book the rate out for you. If this sounds of interest then feel free to get in touch with us on 01494 725353 today and we will run you through how this simple contract option works.
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.
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.
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