The pound has been having a turbulent time of it over the
last couple of trading sessions, as the uncertainty surrounding the current
political climate continues to dominate the news, and markets accordingly.
GBP/EUR is currently trading at 1.1520 (mid-market), and
todays rollercoaster movement is a reflection of the fragility of the pound.
Why have rates moved
As has been the trend recently, it is not numerical economic
data that has been the driving force, but rather news surrounding our
relationship with Europe, and rhetoric from governor of the Bank of England Mark Carneys’ views on how that relationship
will affect the UK economy.
Because this is the case, the market is moving off
subjective data, and therefore sentiment can change quickly, as can rates.
How does this affect
Just the first half of this week we have seen rates move
from a high of 1.1660, to a low of 1.1433, and a lot of movement in between.
This movement would have resulted in a cost difference of over £5000 for a
common purchase of €300,000.
GBP/EUR The week so far
How to navigate the
As a specialist in currency exchange we have a variety of
contracts available to you, designed to assist in this exact scenario. Of note
are Stop Loss and Limit orders.
Both are tools that place automatic triggers in the market
which will purchase your currency if the pre-agreed rate becomes available,
regardless of the time of day.
The Stop Loss is
designed to protect the bottom end of your desired rate, and will trigger if
the ‘worst case scenario’ becomes a reality, and the Limit Order is there to try and catch a rate that is currently
Looking to buy or sell euros?
If you have a requirement to buy or sell euros and are concerned about
how the upcoming Brexit negotaitions will impact your transfer, contract
us today for a free, no-obligation consultation. We don't deal in cash
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Labels: Best Exchange Rates, Best Pound/Euro rate, Best time to buy Euros, Brexit, Euro, Forecast, Pound, uncertainty, volatile, Why have rates moved so suddenly