The EUR has started to retract over recent days, with a drop against both Sterling and the USD.
GBP/EUR rates have dropped to 1.1770 at this morning’s low, providing those clients holding the Pound with some of the best rates of the past few months. This has come in line with a strong run of economic data for the UK, in particular last week’s UK Retail Sales figures, which came in well above market expectation.
We also had UK Prime Minister Theresa May speaking at the CBI conference yesterday and some of her comments regarding our upcoming Brexit were particularly poignant. She tried to calm fears amongst businesses that feared a major change in market conditions following our exit from the EU and she mentioned a possible temporary agreement being put in place, which would run beyond the two-year deadline once Article 50 was triggered.
This boosted market confidence in the UK economy and the Pound, which in turn caused the EUR to weaken.
EUR/USD rates have seen an even more dramatic dip, with the pair hitting 1.0603. The reason for such an aggressive dip against the greenback, is likely the comments made recently by head of the US FED Janet Yellen, who gave strong indications that they would be raising interest rates again next month.
What we’ve seen is a shift in market perception and as such I feel the EUR may have hit its peak in the short-term. Therefore, those clients holding the single currency should look to take advantage of the huge improvements seen, in particular against Sterling and not gamble on another aggressive spike for the EUR.
If you have an upcoming EUR currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.
If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on email@example.com