Today a Euro exchange rates moved much more than expected, particularly with no economic information or political news released today to cause such a stir.
Whilst the initial cause of the movement on GBP/EUR by mid-morning was being questioned globally, later news from high street banks suggested that this was protective trading ahead of the final month of the year.
As this website has covered extensively, the Pound has suffered on a regular basis in recent months since the Leave vote due to cautious trading patterns lowering its demand and therefore value at key moments.
To summise once more, the actors who move the average Euro exchange rates which you see when you search online are high street traders who speculate with vast sums of capital on a daily basis.
At the end of each week, the Pound suffers like clockwork as these speculators seek to protect their profits.
They consolidate their capital in stable currencies so that when they leave their desks for the weekend they can do so with some degree of confidence that their profits will still largely be there by Monday morning.
You get a similar effect at the end of each month as companies as a whole become actors as well. It is particularly multi-national companies who allocate their profits for the month in, again, stabler currencies ready for reinvestment.
So over the next few days, you may expect further problems for buying Euro rates of exchange. As such it may be wise to secure an exchange rate first thing tomorrow morning if you are planning a Euro purchase in the near term. It seems this process of undercutting the Pound is being exaggerated as we edge closer to the end of the month.
You can contact me directly on firstname.lastname@example.org to discuss how to approach the currency markets to try to secure any peaks which emerge and to safeguard your transfer from any potentially adverse movements.