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Buying Euro rates extremely volatile following US election (Joshua Privett)

Wednesday, November 9, 2016 4:25
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Since 2am buying Euro rates have been showing incredible movements as markets adjust to initial exit polls, result confirmations in individual American States, the eventual confirmation of President-Elect Trump, and his surprisingly humble speech. It’s only 9am with still plenty of movement expected today as North-American markets open to trade on the news.

It’s best to briefly re-explain the relationship between the USD and the Euro and why this election has such a strong indirect impact on GBP/EUR exchange rates.

USD/EUR is the most heavily traded currency pairing in the world as they are both the most readily available currencies available to trade. So as a general rule of thumb, whenever there is evident weakness in one currency, you tend to see opposing strength transferred through into the other pair.

This is essentially investors fleeing from that particular currency and the other is effectively the largest net to catch the fleeing capital, which boosts that currency through increased demand.

Initially Trump was looking likely to win and the result was a mass exodus on the Dollar as he was seen as a divisive candidate who unsettled markets.

His surprisingly conciliatory speech which talked of unity and did not rant about his pre-election pledges being fulfilled has calmed market sentiment and tone. As such much of the lost capital from the Dollar into the Euro has since been recuperated and we find ourselves in much the same position as we were yesterday, yet still a slight dip.

There is still North American markets to open to trade on the news so further movement is expected, however, these are no longer simply expected to extend the losses on GBP/EUR this morning.

This is still not the result markets were hoping for which is why GBP/EUR is down 0.5 cents compared to yesterday, but still better than the 1.8 cent drop recorded earlier.

I strongly recommend that anyone with a buying Euro requirement should contact me on to discuss a strategy for your transfer in order to maximise your Euro return.

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 buying Euros and wishing to avoid any potential pitfalls.

Euro sellers can also get in contact, and given that so much of GBP/EUR is governed by politics at the moment, it’s best to be in a position to move quickly to ensure you are not in a difficult position with any sudden turns of events.

If you would like to discuss your transfer as soon as possible, you can also contact me on 01494 787 478 for my direct line – our reception will answer and simply ask to be popped through to Joshua Privett.


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