As my last article detailed on Sunday, the Euro gained against the Pound during the day’s trading, with buying Euro rates beginning to test the 1.11 bracket once more. Luckily for anyone with a GBP/EUR requirement, softer tones coming from Brussels negotiations allowed the Pound some respite so that the losses were minimal.
This morning the key feature to watch out for was business confidence data for the German economy which came out first thing this morning. As the Eurozone’s powerhouse economy, markets are especially sensitive to any information emerging from here, with big changes to the value of the Euro possible.
This data was phenomenally positive. The reasons are as yet unclear as to why, with many competing theories.
These business confidence figures are essentially a measure of where Director’s believe the state of the economy will be in a few months and expectations for stability and profit. With the recent crisis over at Deutsche Bank where Germany’s largest financial institution had to have a guarateed bailout offered by the German Government, the reversal of fortune was surprisingly rapid and strong.
This has prompted rumours of many British based banks having already entered into negotiations with Germany to move their base of operations there.
In the short-term for Euro buyers this means that the Euro has gained strength and become a more expensive prospect.
Moving forward we have the most important release of the month arguably, which is the first look at UK growth data since the Leave vote.
A drop is expected, however it is whether drop exceeds expectations or is minimized which will impact the currency markets most. Given the strong potential for surpise during this period, Euro buyers may be wise to avoid the day entirely, and seize the four cent recovery from the flash crash a few weeks ago before it may be tested again.
In the meantime markets will continue to move between now and the release on Thursday, and opportunities should continue to present themselves given the current volatility in the marketplace.
I strongly recommend that anyone with a buying Euro requirement should contact me overnight whilst markets are quiet on firstname.lastname@example.org to discuss the options open to you to safeguard your transfer and make the most of what is available in this current marketplace.
I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on an upcoming transfer.
You can also contact me on the form below, and I will respond to you as soon as I am able.