Clinton’s second declaration of innocence by the FBI has allowed buying Euro rates to remain relatively steady today, whilst buying Dollar rates have fallen heavily.
Now that the election is fast approaching, it would be best to cover the relationship between events in the US and the currency markets as a whole, not just with the direct impact on GBP/USD rates of exchange.
USD/EUR is the most heavily traded currency pairing in the world given the amount of currency in circulation for both. As a result, a general rule of thumb has been applied that weakness in one currency tends to translate into strength in the other. This is because when investors take their capital out of the Dollar, for example, the Euro will catch a larger percentage of those panicked investors and gain value through increased demand.
The USD strengthened today following Clinton’s exoneration by the FBI. Markets have made no secret that they would prefer a steady head of continuation in the top office in the World’s largest economy, and Trump’s recent gains in the polls were what allowed GBP/USD to reach 1.25 once more recently.
As such, the Euros value remained under pressure throughout the day, with buying Euro rates at inter-bank level managing to remain above 1.12 for most of the day.
Moving forward, much of the rates on GBP/EUR, GBP/USD and GBP/AUD will be governed by the polls which are only just starting to reflect the weekend’s news. Any surprises before tomorrow could curtail this trend, but based on the preliminary gains made for Hillary Clinton, USD buyers may be wise to move sooner rather than later, and Euro buyers may be seeing further tentative gains later on in the day.
In this current market it is imperative to be in a position to move quickly should any tempting rates of exchange occur, as the hyper-sensitivity which has been demonstrated on numerous occasions means that opportunities are rarely around for long.
Furthermore, with so much of the current rates for buying and selling Euros and Dollars built into the political atmosphere, there is an even greater chance of sudden changes in the currency markets, so a premium will be put on being a well-informed purchaser.
I offer a service to my customers to provide just this. There are options tailored to protect yourself from any adverse currency movements and more positively to make sure any tempting movements are seized immediately. You can contact me overnight whilst markets are relatively quiet on email@example.com to discuss a strategy for your transfer aimed at maximizing your return and safeguarding your transfer from any surprises which have become a common feature in these markets since the Brexit vote.
As a final note 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 Euro or Dollar purchase or sale within the next few months and wish to avoid all risk all together.
You can also fill out the form below and I will be in contact as soon as I am able.#