| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
GBPEUR rates wobble but will an interest rate change GBPEUR forecasts (STEVE EAKINS)
Following the UK avoiding a recession late last week rates spiked up to the highest seen since the end of January. By definition a SPIKE does not last for long and these levels were slowly taken away through Monday and Tuesday trading. Many clients managed to benefit of these spikes following their registration to the SPIKE NOTIFICATION service here. (If this is of interest simply send your contact and transfer details to [email protected])
But what next for GBPEUR rates of exchange?
Well the next focus point is the European interest rate decision which is released on Thursday afternoon. There is a view that rates may be lowered following pressure from countries trying to balance their debt burdens, Germany’s economy becoming sluggish and inflation falling across the single currency. There are two views in the market as to what would happen if they were cut from the current record low of 0.75% to 0.5%. Firstly traditionally when an interest rate is cut drops investors’ appetite so there is less demand and therefore weakens that currency. The second is that as in this case the suggested drop is so small, it could be seen as a proactive move and actually drive investment making the euro more expensive to buy.
I think the latter is more probably personally, however I am also leaning towards them not actually lowering rates this week. Either way the release will be key for ANYONE with a currency transfer to make as the Governor of the European Central Bank will be taking questions on the matter driving rates over the press conference so make sure you are close to a computer or have a broker actively keeping an eye on your situation as the news breaks. To put this event into contents it could move the markets by upwards of 1.5 cents adding £1,700 onto a €150,000 purchase.
If you would like to keep up to date on the event or to talk through how this could affect your currency exposure, speak to the experts. Feel free to get in contact with myself or the team here. My name is Steve Eakins and I am one of the elite traders here. Call on the normal number or email me directly at [email protected]
2013-04-30 10:52:29
Source:
