Should I buy my euros now? (Dayle Littlejohn)

In recent weeks sterling has continued to make gains against the euro and we are not close to buying at 8 year highs. It was only 4 weeks ago sterling/euro exchange rate was 8 cents less compared to today meaning a £100,000.00 transfer would now gain you an extra €8,000.

There are numerous reasons for the change in exchange rate, including speculation about the EU quantitative program and the US interest rate decision. Speculators feel the Q.E program could be extended in December and also increased. Further to this the US could hike their interest rate and therefore we have seen a sell off off euros to buy dollars. These are the two main reasons why sterling has been making gains against the euro.

If you are buying a property abroad or need to pay a company invoice, however don’t have all of the funds available to you at the moment, I would strongly recommend locking into a forward contract. A forward contract, is a contract that secures today’s rate but you pay later for it. For further information feel free to email me directly [email protected]. Dayle Littlejohn.