Sterling has gained strength in recent days, after figures showed that UK inflation has turned positive, Unemployment has fallen, and average wage earnings were much better than forecast. This has caused the Pound to gain against other currencies, hitting nearly €1.40 against the Euro, and $1.5750 against the US Dollar:
Pound/Euro over last week:
Pound/Dollar over last week:
The other reason for the Pound/Euro rate gaining is the ongoing Greek situation. Relations between Greece and its creditors have fallen apart in recent days, and tomorrow there is an important meeting of EU finance ministers to discuss the situation. There are fears that Greece could default and leave the Euro, and this uncertainty is what is causing the Euro to remain weak.
Most analysts still expect a deal to be reached at some point, and if that happens then I would expect Sterling/Euro rates to fall sharply. If you need to buy Euros and don’t want to take the risk of the rate dropping away, then you can place a ‘Stop Loss’ order to order your currency if it goes below a pre-agreed level. In this way should the market drop, you’re limiting losses and not leaving yourself open to a much lower exchange rate than necessary.
Are you looking to convert £5000+ on a bank to bank transfer basis, and keen on getting the best exchange rates?
If you need to convert currency, and would like to get a quote to see how much I could save you on your exchange, then it is certainly worth sending me a free enquiry to obtain a quotation and more information on the services I offer. The rates I can achieve are significantly better than banks and other financial institutions offer, by as much as 5% in some cases. I also offer various types of contracts that can protect you against adverse exchange rate movements that banks don’t usually offer to private clients.