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GBP/EUR best exchange rates (Steve Eakins)
GBP/EUR rates saw one of their most volatile periods of the year in the few minutes before and after 18:00 GMT last night.
All of this movement was focused around the announcement of the US interest rate decision and the release of the FED’s monetary policy statement for the US economy at the same time.
GBP/EUR fell down to 1.37 on the expectation of poor news, and the bullish tones of the statement saw a complete reversal of this up to 1.39 before 18:10.
The reason why GBP/EUR exchange rates were so affected by the news in the US is because the USD/EUR is the most traded currency pair in the world. When the value of one changes, the rule of thumb is that you normally see the opposite affect in the other.
As interest rates have not been raised in a major western economy since the financial crisis of 2007/8, the timeline for when an economy is likely to implement a rate rise is the largest single determinant for a currency’s value. The USD strengthened when the monetary report hinted at a rate hike by December this year, which resulted in the sudden capital flow into the Dollar from the Euro seen yesterday, and the significant weakening of the Euro as a result.
GBP/EUR exchange rates are now up at the best rates to buy Euros since August. As this change in rates is nothing to do with events in the UK or EU economies, these rates of exchange are a permanent feature on the markets. If an economy was doing particularly poorly enough to justify these cheap buying rates, further data would be released to give support to these levels.
Without this support rates are already dipping, GBP/EUR has fallen by half a cent and will likely continue to drop gradually with Euro buyers scrambling to secure these rates of exchange, which in turn drives up the Euro’s value through demand.
I strongly recommend that anyone with Euros to purchase before the end of this year should contact me on 01494 787 478 and ask the reception for Steve to discuss a strategy for your transfer and maximise your Euro return. I can also supply a competitive quote for your transfer and have never had a problem beating rates offered elsewhere.
One further point to mention, due to global uncertainty through events in China, there is a strong chance the FED may not raise rates in December. They have delayed a hike 3 times this year alone, and each time the capital flowing back into the Euro has caused GBP/EUR to fall by one or two cents. We may now be seeing the best buying levels on GBP/EUR available for the rest of this year. I will remind our regular readers than these rates of exchange can be pegged to avoid missing out on these currently favourable rates of exchange. [email protected]
Source: http://www.poundsterlingforecast.com/2015/10/29/gbpeur-best-exchange-rates-steve-eakins/
