EUR Sellers Continue to Benefit From UK Uncertainty (Matthew Vassallo)

Those clients looking to sell of their EUR positons have been given the perfect window of opportunity in my opinion. GBP/EUR rates have dropped again during Thursday morning trading, with the pair slipping below 1.24 on the exchange. The recent decline of the Pound has been well documents but do those clients holding EUR really feel that the single currency should be trading at its current levels?

Personally I think we are seeing an overvaluation of the EUR, due to the complete lack of investor confidence in the Pound. This is dragging Sterling’s levels down and distorting the market, which in turn is giving an unrealistic price on GBP/EUR. Whilst some will argue that we could see levels dip again before June’s EU referendum, I am firmly of the opinion that a bird in the hand is better than two in the bush.  Yes, the UK economy is struggling to replicate last year’s positive strides but I do think the current levels have started to factor in a possible “Brexit” and with that scenario still unlikely, we will almost certainly see the Pound start to gain support should the anticipated scenario occur.

Eurozone economic data has been far stronger than last year and even the ECB’s decision to cut interest rates and raise their monetary stimulus programme has done little to halt the EUR’s rise. Retail Sales figures were better than expected earlier this week and with European Central Bank (ECB) president addressing the media shortly, any positive noises he makes is likely to solidify any EUR position.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively you can email me your contact number and query directly to [email protected]