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There may be trouble ahead……
The Euro weakened yesterday on rising uncertainty over just who will be France’s next President. Marine Le Pen has stormed ahead in the polls piling pressure on the single currency. With the first round of voting 2 months away there is plenty of time for this issue to unsettle the Euro. The fact that she has promised to withdraw from the EU and the Euro will do little to inspire confidence in the single currency. Predictions she will fail in her second round attempt will do little to calm the nerves of investors who got their fingers burnt by losing bets on both Brexit and Donald Trump.
GBPEUR rose to 1.19 yesterday and this might become a feature of future trends on the single currency as investors look to hedge against the outside but increasing chance that Le Pen could win. Another factor weighing down the Euro was the news on financial markets that the yields on German debt were at all time lows as investors piled into the perceived safe haven as a bet against any uncertainty and fallout from the French elections.
Most commentators are now predicting that the Euro will only come under further pressure, we now have 3 candidates that are leading the polls making predictions very difficult. Expect lots of volatility on Euro exchange rates as investors try to position funds according to the latest news and polls.
If you have Euros to buy or sell we also have the Dutch election due on the 15th March which will lead to increased volatility on the Euro too. Most commentators are expecting that the Euro will weaken as we approach this event. If buying or selling Euros with pounds then we do also need to take on board concerns of the pound too. The triggering of Article 50 in the coming weeks will only heap and pile pressure on a decision that is already filled with uncertainty.
For more information on what will drive your currency rate and how to protect and plan against the uncertainty please speak to me Jonny Watson by emailing jmw@currencies.co.uk. In my work as a specialist foreign exchange broker I appeared on BBC News discussing the Brexit and I am very confident I can offer you some very interesting insight, options and a rate which will save you money over options.
Source: http://www.eurorateforecast.com/2017/02/23/there-may-be-trouble-ahead/
Trouble is indeed ahead, it is really hard to know how things are going to work out, so we just need to make sure we keep our mind up with things. If we try to do anything silly or crazy than we will have issues. I always keep it relatively straight forward and tight, it helps a lot with broker like OctaFX, as they are extra-ordinary having 50% bonus on deposit that is use able while they also got daily market news update facility too, it all is fascinating!