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GBP/EUR exchange rates focus pairing (Joshua Privett)
Thursday and Friday saw the largest gain on GBP/EUR exchange rates across two days of trading since the announcement of the Greek election in January.
GBP/EUR cannoned upwards from the 1.35’s to the 1.39’s before settling in the 1.38’s at the close of play on Friday. This is now the best time to buy Euros in two months.
The main force behind this incredibly favourable movement for Euro buyers was the speech given by Mario Draghi, the head of the European Central Bank, in the afternoon on Thursday about European monetary policy.
He announced that the Quantitative Easing Program, essentially an emergency stimulus of cash injections into the economy to keep inflation down and spending up, will likely continue on past the September 2016 deadline.
The Euro lost value as many investors unwound long-term positions on the Eurozone economy, as they previously thought normality would return to the Eurozone by the end of next year. The Euro lost value due to decreased demand during the sell-off, which continued into Friday with some companies taking more than a day to change their long-term strategies.
Where will GBP/EUR rates go from here?
As the above suggests no new policies were actually introduced at the meeting, so instead the markets moved on the rumour that business conditions may change in the future and will not be confirmed until 2016.
So Euro rates will largely be in limbo following the news, and likely will gradually tick down due to the net increase in Euro buyers with its sudden and dramatic cheapening. This will increase the value of the Euro due to increased demand. Rates already corrected below 1.39 at the close of play on Friday due to this effect.
As such I strongly recommend that anyone with Euros to purchase should contact me on [email protected] to discuss a strategy on how you can squeeze the most out of this movement in your favour and maximise your Euro return. I can also supply a competitive quote on your transfer – I have never had a problem beating those offered elsewhere.
Even if your requirements are not until the start of next year, these rates can be pegged to avoid missing out on incredibly favourable buying levels. I must remind readers that 10 days ago the rates had bottomed out for the second time that month at 1.33 – this movement should be seized.
Source: http://www.poundsterlingforecast.com/2015/10/25/gbpeur-exchange-rates-focus-pairing-joshua-privett/
