Buying Euro and Dollar rates suffer heading into the weekend (Joshua Privett)

Speculative trading has once more rained on the parade of Euro and Dollar buyers who had enjoyed a steady stream of improvements since the announcement of the General Election in April.

Heading into the weekend trading patterns become abnormal. Regular readers will have to forgive me but I will address this quickly.

Speculators at high street financial institutions are the actors who move the exchange rates by buying and selling hefty volumes of currency for profit. However, these traders still have to sleep and go home.

On Friday at 6pm, UK traders leave for the weekend. However,  North American markets are still open and active due to the time difference. As such, to protect their positions when they are away from their desks and to ensure UK traders don’t come back to their desks on Monday morning to dramatic losses, they try to hold onto the most stable currencies they can.

Due to the negative press the Pound received on Thursday with the modest growth outlooks for the UK economy, and lack of appetite for interest rate hikes, the Pound’s slide made it an unattractive currency to hold. Slowing demand explains why buying Euro rates fell at the end of UK trading below 1.18.

So what next?

The positive news for Euro and Dollar buyers is that when trading resumes next week the Pound takes some form of bounce back. The mountain of cheap Sterling is too much to resist for the buy back trend to not begin first thing.

Current expectations, however, is for a general deflation in Sterling’s overall value next week. There is little economic news to be released, and the UK election campaigning will not be ramped until high gear until the following week.

As such this current negative narrative established from the Bank of England last Thursday is expected to continue to weight on the Pound’s value in the short term.

Anyone with a Euro, US Dollar and Australian Dollar requirement in the immediate term may be wise to seize any resurgence occuring throughout Monday. I am in a position to assist in the timing of your purchase.

Similarly, anyone who has the time to wait for UK election polling to begin to influence Sterling’s value as we get within throwing distance of polling day, should contact me to discuss a strategy on how to approach the vote to secure any targetted peaks and ensure you are better protected from any downside risk.

I have never had an issue securing more commercial exchange rates than what is on offer elsewhere due to the multiple counterparties I buy through. Contact me over the weekend on [email protected] while markets are closed for a short discussion concerning your personal situation.