The Pound has stabilised somewhat and has settled down at around €1.31 vs the Euro. It’s been a great week for Sterling, which has risen on the back of various polls and betting odds showing that it’s increasingly unlikely that we’ll see a ‘Brexit’. This means less uncertainty, and with it less volatility and that’s why the Pound has gained. Here’s how GBP/EUR has moved this week:
Pound now steady at €1.31
As you can see from the graph above, the rate hit ‘resistance’ at €1.32, but has now found ‘support’ at €1.31. There are no data releases of note for the UK today. We could see the rate drop away as we did last Friday though, if we see currency investors and speculators bank their profits and sell the Pound now it’s risen in value.
This is what happened a week ago and rates fell to about €1.29. €1.31 seems to be a key support level though, so perhaps we will see the gains sustained this time around and it will stay steady!
Should you buy Euros now, or wait?
Despite the fact that the Pound has gained due to a remain vote looking likely, many clients and businesses are choosing to ‘hedge their bets’, as there is still a chance we’ll vote ‘out’.
If you need to buy Euros, you can do the same. Whether you’re a business that buys or sells in Europe, or a private client buying property overseas, you can take advantage of our foreign exchange services to protect yourself against a volatile currency market.
For example, if you have €200k to move to Spain to purchase a property, you could fix the rate today on half of your requirement while it’s near a 4 month high, and wait until after the referendum to convert the other half. This removes your exposure by 50%, giving yourself some protection regardless which way the market moves.
Alternatively you can use a ‘Stop Loss’ order to instruct me to convert the funds if their rate drops below a pre-agreed level, €1.25 for example. In this way, you’re protected against the Pound plummeting should we end up voting to leave the EU.
These are just some examples of the ways I can help any clients that need to make a currency transfer. The solutions vary of course, depending on your particular requirements and attitude to risk.
Get in touch to ensure you get the best exchange rates
I would strongly recommend that anyone who needs to covert currency get in touch for a quick chat about how I can help and the services we offer. In addition to various contract types, I provide exchange rates 5% better than may be available elsewhere. I have worked in Financial Services for 20 years, and for more than a decade have specialised in providing foreign exchange for private and business clients. I have extensive market knowledge and can help you to decide when to fix a rate and what action to take.
Our trading floor is closed for Bank Holiday Monday, so I’ll be back in action on Tuesday.
Have a great weekend.