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GBP/EUR exchange rates relatively stable for now (Joshua Privett)
GBP/EUR rates of exchange have been fluctuating marginally above and below 1.40 this morning, but this is hiding a significant amount of value changes for both the Euro and for Sterling – both of which are weakening.
The Pound has been sliding gradually in value since the shock announcement last Thursday that firmly took an interest rate hike for the UK economy off the table until 2017.
The mass sell-off of Sterling since has been the root cause of the falls in GBP/EUR rates as the Pound loses value through reduced demand. Companies, financial institutions and individual investors are looking elsewhere for better returns in 2016 with previous hints are a interest rate rise early next year in the UK now being proved false.
This fall on Sterling is set to continue through November as markets alter their positions in time for the holiday period where traditionally financial markets go quiet, so those with a GBP/EUR requirement will be seeing continued pressure on their exchange moving forward.
Luckily for Euro buyers, a short term market trend emerged on Friday to keep the mid-market level for GBP/EUR around the 1.40 mark, this was a result of events over in the US.
The USD/EUR is the most heavily traded currency pairing in the world, so the general rule of thumb on the currency markets is then when one strengthens the opposite experiences some weakness.
In this instance, markets were amazed to find that an additional 100,000 more jobs than expected were added to the US economy last month, and the resulting explosion in Dollar strength has caused the Euro to weaken as capital flows out of the Eurozone and into the USA. This has gradually continued into the start of trading this week as markets continue to digest the news.
While both currencies weakening has balanced out the rates for GBP/EUR to some extent, there is still a net loss for Euro buyers last week. The above loss of value for the Euro is also ‘artificial’, as it is nothing to do with changing performance in the Eurozone economy. It will therefore only have a short-term effect, but the sell-off for Sterling seems set to continue.
With the establishment of a negative trend I would not be surprised that the current levels for GBP/EUR buying rates will be the best available for the remainder of 2015. I strongly suggest that anyone with Euros to buy in the coming months should contact me on [email protected] to discuss how these currently historically high levels can be fixed to avoid your transfer becoming more expensive. I have never had an issue beating the rates of exchange offered elsewhere.
Those with Euros to sell can do the same, and we can discuss how to ride any moves in your favour within the time-frame you have to complete your transfer. Joshua Privett – 01494 787478
Source: http://www.eurorateforecast.com/2015/11/09/gbpeur-exchange-rates-relatively-stable-for-now-joshua-privett/
