Monday 2nd December 2013
Good afternoon. Well in my post late on Friday I highlighted the spike in Pound/Euro rates. This actually continued over the weekend, and when I arrived on the trading floor at 08:00am this morning mid-market levels were at an astonishing €1.2100, which is a remarkable run for this currency pair. The question is, will it last…?
Pound/Euro sustained above €1.20, for now…
As you can see from the chart showing todays movements, the market opened at €1.21. The levels were not to be sustained for long however, and throughout the day we saw the Pounds gains becoming eroded, and exchange rates have slipped away throughout the day.
The market is still above the €1.20 mark however. The fact it has broken through this level has surprised many in the market, myself included, who did not expect rates to break €1.20 this year. I did however state in a recent post that while I didn’t expect it to break through €1.20, if it did it would likely continue rising significantly above it, and that’s what we have seen happen.
What will happen moving forwards depends on this week’s economic data releases. Now levels are above €1.20 I expect them to be supported at that level, unless we get any suprises with the week’s economic data.
In today’s post I’ll simply give a brief outline of different strategies you can consider if you are converting foreign currency and need the best rates. In tomorrow’s post, I’ll list the week’s economic data releases that I think will affect exchange rates this week.
Do you need to buy Euros at the best rates?
If I needed Euros I would place a Stop Loss order to fix a rate should it drop below a pre-agreed level. This means if rates continue to rise you can still take advantage of further gains, but not risk losing out on the 5% gain in rates we have seen in recent months.
Perhaps you want to maximise a Euro to Pound transfer?
This fixes your rate if it gets worse than a pre-agreed rate that you can decide, giving you some control over currency markets which are very volatile.
I can also source Limit Orders, Forward Contracts, and Spot contracts at rates significantly better than banks and other financial institutions.
Sterling is currently at the best level in many years against lots of major currencies, including the US Dollar, Euro, and also the antipodean currencies such as the Australian Dollar and New Zealand Dollar.
If you are looking for the best exchange rates for any major currency, or have a foreign currency you want to convert back to Sterling, then I can help you.
In addition to the rates I can source that are up to 5% better than the banks, I have extensive knowledge of the currency markets, and various contract types that can protect you against rates moving the wrong way, and help you to budget. Very useful if you are buying or selling property abroad, or buy and sell goods in the Eurozone for example.
I look forward to hearing from you.