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GBP/EUR rates of exchange hit new two month highs (Joshua Privett)
GBP/EUR exchange rates have had one of their most volatile months on record. Rates on offer swung repeatedly between absolute highs of 1.399 and concrete lows of 1.334. As such timing transfers became ever more crucial in securing a profitable rate of exchange on any transfer.
Even though China has been in the news regularly in recent months, the main determinant for GBP/EUR floating up to the best rates available since the middle of August actually come from news in the USA.
On Wednesday, the FED announced their interest rate decision for the US economy. While their was no change, they did hint that an interest rate hike could occur as early as this December.
Why does this affect GBP/EUR exchange rates?
The USD/EUR is the most heavily traded currency pairing in the world. Any change in the value of one normally results in the opposite effect for the other. In this case, incredibly positive news about US interest rates caused capital to flow out of the Eurozone and into the US economy in the hope of higher returns in December should interest rate rises occur.
The resulting weakening of the Euro from this capital outflow caused it to weaken against Sterling as well.
Though this is certaintly a fantastic opportunity for Euro buyers, but those who have a GBP/EUR requirement must note that these rate changes are unlikely to be a long-term feature on the currency markets.
The favourable movements on GBP/EUR are nothing to do with changes in economic performance in either the UK or the Eurozone. As such there is little further data to be released that can support these buying levels.
Real data released today showing very positive inflation data for the Eurozone economy proves this. GBP/EUR rates have already begun to tick down and flirt with hitting 1.38 again.
I strongly recommend that anyone with Euros to buy should contact me on 01494 78 7478 and ask the reception for Joshua to discuss a strategy for your transfer, and receive a competitive quote, should you wish to maximise your Euro return.
Even if your GBP/EUR requirement is not for a few months, these current rates of exchange can be pegged to avoid further losses. [email protected]
Source: http://www.eurorateforecast.com/2015/10/30/gbpeur-rates-of-exchange-hit-new-two-month-highs-joshua-privett/
