Yesterday saw some significant movements between the GBP/EUR pair as well as a number of other major currency pairs involving the Pound.
There’s a number of rumors as to why the Pound was sold off so heavily in the late afternoon, and I think the main reason for the steep drop was the announcement that up to £66bn a year could be wiped off of UK tax revenues due to the Brexit. There was also talk of Fujitsu cutting 1800 jobs within the UK and this adds to the talk of other companies such as Morgan Stanley discussing culling UK jobs in the 1000’s recently.
Within economic data thin on the ground this week in terms of UK releases, we can expect to see the Pound continue to be driven by sentiment as it has been for much of this year due to sensitive political climate within the UK currently.
Sterling has been trading in such a volatile fashion recently, some traders have described it’s movements as those of a ’emerging market currency’ and I can understand why when we consider that the pair dipped below 1.10 yesterday afternoon whereas now the pair are trading almost as high as 1.1150.
Those hoping for further Sterling strength should be aware of the price forecasts outlined by a number of major financial institutions recently. Credit Suisse had outlined 1.10 as a forecast but with that now being hit, I think the other key price target is that set by HSBC, who see the GBP/EUR pair hitting parity by the end of next year.
Those that need to exchange Pounds into Euros would do well to get in touch with us, and take advantage of our exchange rates as they’re considerably more competitive than what the high street banks offer, therefore you will receive more Euros with us than if you make the conversion through your bank. This is key during moments like this as with the Pound dropping rapidly, competitive rates are crucial.
If you are planning to use GBP to buy a foreign currency it may well be worth your time getting in contact with me on firstname.lastname@example.org in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.