Last week has seen GBP/EUR rates drop down close to 1.40 territory and then rise back into 1.43, the continuous movement highlights just how volatile the currency markets currently are. We are still however maintaining extremely good GBP/EUR rates but in this volatile market timing is currently everything, with the help of a currency expert you could see 1000s in savings due to timing.
The volatility looks set to continue as the Eurozone recovers with the QE stimulus plan in full swing but the worries involving Greece are far from over. The mixed news and the UK’s rate rise looking near certain in the not too distant future is creating a constant battle of strength creating the consistent switches in rates we are seeing.
As markets open this morning it appears to be Wednesday that is likely to have the biggest effect on Sterling Euro exchange rates with the release of Eurozone retail sales. The previous data release was 2.4% so anything else could cause volatility for rates.
Later this Monday the US releases manufacturing data and this will have a a future impact on the Fed’s decision as and when they may raise interest rates.
Indeed, last week although the Fed kept rates on hold if the data in the US continues to be positive this could mean a September rate rise which could result in Dollar strength. Typically when we see Dollar strength this often results in Euro weakness so I think we could see even better opportunities to buy Euros with Sterling during next week.
Need to buy Euros soon? How do you secure the excellent current rates?
If you are looking at completing on a property purchase/sale, or even just looking to transfer money in the near future you can still take advantage of the current rates. This can be achieved by booking todays rate and holding this for upwards of 12 months (Forward Contract). Effectively allowing you to budget accordingly and eliminate market volatility.