The Pound is really performing well at the moment. As we enter Autumn, Sterling has received another lift this morning in the shape of the latest Manufacturing figures. They came in at 53.3, and the expected number was only 49.00. (A number above 50 shows expansion, a number below 50 shows contraction.) The fact that this sector seems to be booming in the post-Brexit period is a surprise, and the Pound has shot up as a result. Here's how the rate has moved this morning:
This is the best that we've seen the GBP/EUR pair in over a month. So will the Pound go higher, or is this rally now over and rates will fall back away again? There's no way to predict this of course, but for those that need to buy Euros, this is a very welcome sight.
Do you need to buy Euros? Here are your options..
If I needed to buy Euros, I would consider the fact that in the last few weeks the rate has improved by 3.5%, and on a purchase of €300,000.00 it's a saving of over £9000.00. I would not want to throw away these gains should the market fall back away again, which it may well do according to many forecasts. Here are 3 options that I would consider if I needed to buy Euros....
- Fix the rate now with a Forward Contract. This allows you to lock in the current rate for up to 2 years, guaranteeing the price you get, and helping you to budget for things like buying a property abroad. You have to lodge 10% of the total to be converted, with the remaining funds to be paid when you want your currency transferred. (Forward Contracts)
- Use a Stop Loss Order. This protects you against a sudden fall in the Pound while still allowing you to take advantage of any subsequent gains. You place an order to fix a rate if it drops below a pre-agreed level, €1.15 for example, allowing you to hold out for a better rate, whilst having a ‘worst case scenario’. If rates continue to drop, you have a bottom line ensuring you remain within the budget you have set. This is useful when the rate is increasing as it has been of later. You can amend your Stop order higher to follow the market trend if it continues to rise. (Stop Loss Orders)
- Hedge your bets. Buy 50% of what I need now, and take a gamble on the remaining amount that you need. This gives you some protection regardless what happens to the rate. If it goes higher, then you can buy your remainder at a higher level. If it plummets, well then you've removed 50% of your exposure already meaning you don't lose out as much.
The above are just some examples of the ways I can help clients that need to convert Pounds to Euros in the next 12 months. In addition to these types of solutions, the rates I provide are much better than achievable elsewhere, with savings in the region of 2% to 3%. On a large transfer, this represents a saving of thousands of Pounds.
If you need to buy Euros, and would like to discuss the ways I can help you, then click here to send me a free enquiry today. I can then discuss your particular requirements, explain how our service works, and provide a rate for you to compare with your bank or existing broker.