Will Pound/Euro go up or down?
Sterling has bounced back this afternoon, with GBP/EUR recovering from lows of €1.1350, back to where we started the day around the €1.14 mark, which is the highest in nearly 3 months. While Mark Carney did his usual job of talking Sterling down as we mentioned in this morning’s earlier post.
Throughout the afternoon however the Pound recovered after the end of the latest round of Brexit negotiations. It seems some progress has been made and that was enough to push the Pound higher.
As you can see from the chart below, back in June and July rates were also up at €1.14 but hit ‘resistance’ at these levels as was unable to break above this mark. It sat at around this level for some time, before dropping to €1.08.
For the last week this pattern seems to be repeating, with the rate unable to go much above this level.
There’s no way to predict if we’ll see a repeat of what happened a few months ago, but with a 6% gain in the last few weeks, I think there is the chance that the rate has risen as much as it’s going to. If you need to buy Euros in the next few weeks, then there is probably more to lose than there is to gain by hanging on hoping for more gains.
Holding out for an inch risks losing a yard, and with even small movements in the currency markets equating to losses of thousands of Pounds on large transfers, those that need Euros to buy property should consider carefully when to fix a rate.