Monday 20th April 2015
Good morning. Before we look at what has been happening with exchange rates this week, I would like to take a moment to thank both regular and new visitors to my site for their support. Today my blog logged its 1 millionth unique visitor! Readers that chose to send an enquiry to find out more about the services I offer have now converted over £35m, at rates up to 3% better than banks can offer meaning I have saved my clients over £1 million pounds to date, which is something I am very proud of. If you would like to see how I can help with your exchange, you can send me a free enquiry by clicking here.
What has been happening with the Pound/Euro rate?
After quite a bit of volatility this year that have seen GBP/EUR rates between a range of €1.25 and €1.42, the last week has been relatively stable. The exchange rate has remained within a 1 cent range between €1.3850 and €1.3950:
Will Pound/Euro rates drop as the election approaches?
Well that’s what many analysts have been saying for several weeks, and I agreed that it was likely the rate would drop. This was based on what happened as the Scottish referendum last year created similar uncertainty. However I’m starting to think it’s not a given the same thing will happen. The Scottish vote seemed to catch the markets by surprise, but this time most investors have put plans in place well in advance of the election, which means we may not see the Sterling sell off that would cause the Pound to fall. That would explain why rates have remained supported around the 1.39 mark despite a hung parliament looking very likely.
Indeed with the UK economic recovery being praised by the IMF chief we could well see the Pound hang on to it’s relative strength. Also, the Euro remains very week indeed especially with the ECB President Mario Draghi making clear last week that quantitative easing would last until September 2016, then there is every chance we may actually see rates remain around these levels and possibly even rise higher.
What should you do if you need to buy or sell Euros?
Of course there is no way to predict which way the rate will go, so what you should do is contact me to discuss the various options you could consider. For example if you need to buy Euros, then you can place a ‘Stop Loss’ order to fix a rate should it drop below a pre-agreed level, for example €1.35. In this way you’re not exposed to a huge fall in the rate should the election cause Sterling to plummet, but you're still able to take advantage of higher rates if we see things get back to the €1.40 level.
This is just one example of the type of thing I can offer, but of course every particular currency requirement is different. You may need to convert Euros to Sterling following a property sale for example.
Whatever currency you need to buy or sell, why not get in touch to discuss the options available to you, and get a quote to compare with your bank or existing broker. You can do this for free without any obligation by sending me an enquiry here.
I look forward to assisting anyone that needs to convert £5k+ on a bank to bank transfer basis. I’m afraid I can’t help with cash or holiday money.
Labels: Best Exchange Rates, Currency, FX, Pound/Euro, UK election, When to Buy Euros, Will Sterling/Euro get back to 1.40, Will the Pound fall