This week has seen the Pound/Euro rate rise nicely, and it’s close to an 8 year high. However try as it might, the pair can’t seem to break through the €1.43 barrier. As you can see from the chart below, it’s tested these levels several times but each time hits resistance:
It’s a repeat of the trend we’ve seen throughout 2015. If you look at charts further back, you can see the rate has reached these levels about 5 times, but then drops back away to the mid €1.30’s. It might go higher of course as there is really no way to predict which way it will go, but any clients looking to purchase Euros should consider past performance, and decide whether they want to fix a rate on some or all of the Euros they will need in the coming months.
This morning the rate returned to €1.43 due to comments by the European Central Bank president, where he hinted in a speech that further action is necessary to raise inflation. To me, this indicates they will pump more Euros into the economy next month, and possible cut interest rates. This has weakened the Euro and is the reason for this morning’s modest gains. It looks like the weakness in the single currency is now being priced into the market, and in my opinion the reason rates can’t go higher.
When is the best time to exchange your currency?
As I’ve stated above, I don’t know which way the rate will go and anyone that tells you they can is telling fibs! However with a sound knowledge of what moves the market, and an analysis of recent trends, you can use my expertise to make an informed decision on when to trade.
Therefore if you have currency to exchange, then get in touch for a free quote and a quick chat on the phone with me. I can discuss your particular requirement, explain your options and provide you a quote to compare with your bank, or existing currency broker. My firm has a turnover of over £300m per year and so the rates of exchange we can access are usually significantly better than you can find elsewhere. How much could you save? Send me a free enquiry now and find out in a few minutes!