GBP/EUR rates set to fall this week (Joshua Privett)

Buying Euro rates have begun the early morning trading session with relative stability.

Most of the correspondance I answered over the weekend were enquiries as to where GBP/EUR rates of exchange are expected to go following the roller coaster of movements on Thursday and Friday last week.

The consensus among analysts is that GBP/EUR will likely be seeing central levels closer to the 1.26 mark which was almost hit on Thursday last week, and there are a few reasons why:

1. The recovery on Friday for GBP/EUR was not due to any positive news for the Pound, nor any negative news to make the Euro cheaper to buy. In fact no relative economic or political information came out on Friday which would have any bearing on the currency markets. So in this instance, the gradual rise of buying Euro rates on Friday following the near 3 cent drop of Thursday, can be seen a standard currency market correction following any severe slide. Thursday’s movement made the temptation for companies and individuals with a short-term Euro selling requirement to move too high. The mass Euro sell-off which ensued explains the gradual gains gifted back to Euro buyers on the currency markets as Friday continued. This suggests these are thus short-term gains rather than a new trend being established.
2. Wednesday is expected to be a key feature for Euro weakness. Strangely, events in the US are set to be the culprit. USD/EUR is the most heavily traded currency pair in the world, so when either the USD or the Euro weakens, the general rule of thumb will see the other gain signficant strength. USD weakness is expected on Wednesday, as they announce a delay in their second interest rate hike which has been hinted at over the past two weeks. In this instance, a huge amount of capital should flow into the Euro and make the single currency more expensive to buy through increased demand.

However, as the start of the article suggests, this morning has started with relative stability. I believe only on Tuesday will we see markets begin to price in the falls on GBP/EUR buying rates expected on Wednesday. So opportunities may still present themselves today.

I strongly recommend that anyone with a Euro buying requirement should contact me on 01494 787 478 and ask the reception team for Joshua in order to discuss a strategy for your transfer in order to maximise your Euro return.

I have never had an issue beating the rates of exchange offered elsewhere. Should we speak this morning, or even in the middle of the afternoon, we can discuss a plan of action to make sure opportunities are seized rather than missed.

These current buying levels can also be fixed in place for up to a year if you are worried about the upcoming referendum making your exchange more expensive. [email protected]