Today has been the first day since last Friday where the net result for the day is actually in the green for anyone considering buying Euros, US Dollars or Australian Dollars. Whilst the gains are not enough to send anyone jumping around the room, it is a signal to markets that the narrative surrounding the Pound has changed.
Part of this is that there has been some positive news today from the UK itself, with confirmation that car manufacturing numbers have reached a record high post-Brexit producing a diamond from what has been a rough week for Sterling across the board.
So the cheap Pound is boosting exports, but this is struggling to challenge the dominant narrative surrounding the Pound which has been interest rates. But again, we are seeing some respite in this area for Euro and Dollar buyers.
The reason for the slide on the Pound which this website has extensively covered was due to the heavy hints last Thursday that there may be a further interest rate cut in the UK before the turn of the year. Coupled with the profit taking activities by speculators on Friday afternoons, the effect this had on the Pound was severe with 2 cent losses on GBP/EUR, GBP/USD and GBP/AUD last Friday.
The pressure was also piled on Sterling as the USA were on the verge of actually raising rates yesterday evening, yet shied away at the last moment. Indirectly, this would have made the Pound seem like a less attractive commodity by comparison if the Dollar had raised interest rates. The avoidance of this means the Pound won’t be losing value in this area due to decreased demand.
Tomorrow the main attraction for currency markets will be business confidence figures in the Eurozone for their service and manufacturing sectors, which are set to slow a slight decrease from previous months due to some of the recent slowdowns recorded in Eurozone’s powerhouse economy – Germany. This should creating tempting opportunities on GBP/EUR to compliment the 0.7 cent rise seen today.
However, Friday profit taking should come around the corner once more for anyone with an upcoming currency requirement, whether buying Euros or Dollars.
As the above paragraph alluded to, on Fridays high street traders who have been speculating heavily on the currency markets all week must allocate their profits in a stable currency whilst they are away from their desks. This protects their gains whilst markets are still operating from 6-11pm on Friday and 2-6am on Monday before they return. The Pound has been anything but stable in recent weeks, so we are seeing demand for it plummet during this period, and therefore its value by association.
So based on the current expectations Euro buyers in particular could see some improved opportunities during the first part of tomorrow, yet Euro and Dollar buyers alike will likely suffer.
If you have a GBP/EUR, GBP/USD, or GBP/AUD requirement in the short to medium term I strongly recommend contacting me this evening or tomorrow morning on firstname.lastname@example.org whilst markets are quieter to discuss the options open to you to ensure any tempting peaks which emerge tomorrow are reached, and that your currency purchase is safeguarded from any particularly adverse movements.
With the expected volatility tomorrow a well timed transfer could save you thousands on an upcoming purchase, and I will highlight that I have never had an issue beating the rates of exchange offered elsewhere in the past.
Euro or Dollar buyers can also fix the rate of exchange ahead of an upcoming transfer, essentially pre-booking your currency, to avoid seeing the budget of any future purchase being eaten into.
Euro and Dollar sellers alike can also get in contact to discuss the potential to secure any highs reached to buy the Pounds during the final hours of the week, as you can secure a desired level should it become available even for a few moments outside of UK trading hours. You can fill out the form below and I respond as soon as I am able to.