Euro Forecast – When will GBPEUR hit 1.30?

The continuing debt problems in the Eurozone have given rise to an excellent improvement in the GBPEUR rate to levels which anyone buying Euros in the last few years could only dream of.

The Euro has become less and less attractive as a currency but has regained favour in the last few weeks on hopes that some kind of solution will be offered to limit the borrowing costs of Italy and Spain, whilst Greece will be given more time to manage its own debt problems.

This confidence is best represented not only in the improvement of the Euro against most currency pairs, but also on USD rates. EURUSD is now over 1.25 (up from 1.21 last month), whilst GBPUSD has hit a three month high.

Many clients buying Euros are holding out for an exchange rate of 1.30 but it is important to recognise there has been a change in sentiment on the market. 1.30 is of course much better than 1.26, but whilst waiting for it to hit 1.30, you could miss out on what are still exceptionally good rates. Don’t forget the highest the rate achieved this year was 1.2880, and that was a month ago. If you are holding out for a return to this kind of level there are a number of things that need to happen, the market is very different to the one that allowed this rate to be achieved.

Greece looked likely to be leaving the Euro and Spanish and Italian borrowing costs were above 7%, the level seen as necessary for a bailout. Now there is speculation following ECB press conferences and medai leaks that these bond spreads will be capped. There has been much more positive news and this has calmed the markets. And even if we do not see these measures being implemented the current sentiment is positive for the Euro.

Don’t forget the Eurozone is one of the largest economic areas in the world and is a key partner in the global economy. It acts a gateway for the West to East, and East to West as well as a route through to Africa. Culturally and politically important on the world stage, we ignore and underestimate the strength of not only the Euro, but Eurozone leaders at our folly.

No one can tell you exactly what will happen on exchange rates, but I can offer a specialist and highly personal service, all designed to make sure you get the very best rates and are aware of all the issues surrounding your trade. That way you can make an informed decision about when to trade.

On amounts of 1000 GBP to multi million pound transactions, buying and selling currency, I can help with the above. Making an enquiry with me is absolutely free and at no obligation. If you would like to learn more please get in touch personally on [email protected] 

2012-08-23 16:16:19

Source: http://www.eurorateforecast.com/2012/08/23/euro-forecast-%e2%80%93-when-will-gbpeur-hit-1-30/