Sterling has had a relatively quiet start to the trading week with little or no data of note released that could impact the pound. We have continued to trade within a very tight range, particularly for GBP/EUR, with today’s levels sitting between 1.1440 and 1.1390. For the last 7-8 months sterling has traded within a 4.5 cent window against the Euro, a trend I think is likely to continue.
When should I buy Euros?
As mentioned sterling has now sat within a 4.5 cent window against the single currency since the back end of 2017. We have seen a high level of 1.1580 and a low of 1.1130 during this time. This is an incredibly tight range over such a long period meaning it is difficult to pick the best time to buy. This, indeed, is a question I get asked daily and is of course an impossible one to answer. However if you look at the trends, the pound has pushed through 1.15 on just a handful of occasions this year, meaning those targeting to buy at 1.15 could be holding out for an unrealistic level. With the average trade level for 2018 sitting roughly at 1.1370 I would be adjusting my targets and would suggest a buy at 1.14 would be more of a realistic target price.
We are now sitting at just shy of 1.14 on the mid market meaning those looking to buy Euros are close to being able to buy at 1.14. For this reason it is important to get yourself in position to strike when that opportunity should arise as it may not hang around for long. Here at Currency Forecasts we can help ensure you do not miss out on a market spike. This can be done by utilising a carefully placed limit contract which guarantees you will not miss a good buy opportunity.
For the rest of the week there is little date of note expected from the UK but watch out for a number of speeches from members of the Monetary Policy Committee (MPC) starting tomorrow. Any other movements are likely to be influenced by data in Europe with the notable release being Euro Zone GDP figures tomorrow morning at 10:00. Levels are forecast to stay flat at 0.4% but any deviation and expect Euro volatility following the release.