The pound has been having a turbulent time of it over the last couple of trading sessions, as the uncertainty surrounding the current political climate continues to dominate the news, and markets accordingly.
GBP/EUR is currently trading at 1.1520 (mid-market), and todays rollercoaster movement is a reflection of the fragility of the pound.
Why have rates moved so suddenly?
As has been the trend recently, it is not numerical economic data that has been the driving force, but rather news surrounding our relationship with Europe, and rhetoric from governor of the Bank of England Mark Carneys’ views on how that relationship will affect the UK economy.
Because this is the case, the market is moving off subjective data, and therefore sentiment can change quickly, as can rates.
How does this affect you?
Just the first half of this week we have seen rates move from a high of 1.1660, to a low of 1.1433, and a lot of movement in between. This movement would have resulted in a cost difference of over £5000 for a common purchase of €300,000.
GBP/EUR The week so far
How to navigate the market?
As a specialist in currency exchange we have a variety of contracts available to you, designed to assist in this exact scenario. Of note are Stop Loss and Limit orders.
Both are tools that place automatic triggers in the market which will purchase your currency if the pre-agreed rate becomes available, regardless of the time of day.
The Stop Loss is designed to protect the bottom end of your desired rate, and will trigger if the ‘worst case scenario’ becomes a reality, and the Limit Order is there to try and catch a rate that is currently unachievable.
Looking to buy or sell euros?
If you have a requirement to buy or sell euros and are concerned about how the upcoming Brexit negotaitions will impact your transfer, contract us today for a free, no-obligation consultation. We don’t deal in cash or holiday money, but if you need to have currency wired to a bank account to purchase property overseas for example, our rates could be up to 3% or 4% better than your bank may offer, potentially saving you thousands. To get a free quote simply click here or complete the form below. https://form.jotformeu.com/jsform/62452062907353