Last Friday anyone with a buying Euro requirment would have been feeling anxiety akin to what was filtering through markets in the wake of the Leave vote in June.
On both occassions the market crashed very early in the morning UK time due to trading in Asian markets. The difference was that on this occasion markets were not reacting to any news in particular.
The Bank of England are still investigating, but the consensus is that automatic trading algorithms created a ‘flash crash’ in reaction to a large position in Sterling being sold, which then cascaded downwards within a matter of minutes – with no human elements being part of the decision making process. This was all automatic and immediate.
Sure it’s unlikely this could ever happen without the nervous atmosphere created around the Pound with a looming Brexit, but the clear point here is that what happened on Friday is not part of a trend. This was an anomaly in the financial markets, that I hope will be dealt with swiftly.
So what does this mean for buying Euro rates moving forward?
We already saw a net recovery on GBP/EUR by the end of the day back above 1.10, so there was enough confidence in the currency markets to realise that it was a flash crash, and not a vote of no confidence in the UK economy moving forward.
As such, on Monday, I expect similar gains for the Pound against the Euro. The cheap and readily available mountain of Sterling should mean that the net flow is to buy Pounds, therefore increasing its value through increased demand.
However, markets are still on edge. I would not expect a return above 1.13/1.14 anytime soon.
Anyone with a Euro buying requirement should know that a premium will be put over the next few weeks and even months to be in a position ot move quickly should any tempting opportunities emerge. With a market this on edge, you can expect them to evapourate quickly.
I offer a proactive service to keep my customers informed of such opportunties, and any changes in expectations on the currency markets to ensure you remain a well informed purchaser.
Euro sellers are in a more enjoyable position at the moment, obviously. As the above states if you want to ensure this gifted movement on the exchange rates are seized you can contact me on firstname.lastname@example.org over the weekend whilst markets are closed for an immediate quote on your transfer.
I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency purchase later in the year. Pre-booking your currency could save you thousands on an upcoming transfer.
Euro buyers and sellers alike can also get in contact with me using the form below, and I will respond as soon as I am able.