Yet again Sterling has been unable to sustain its gains after its recent rally. Last week GBP/EUR rates had hit €1.15 which was the highest this pair has been since June last year, however as has happened many times over the last 9 months, the gains have proved to be short lived and Sterling has fallen.
Today GBP/EUR has dropped back into the €1.13's. It's not much of a surprise that this has happened again. The progress with Brexit talks was welcome, but in reality it's only the end of the first chapter in what is likely to be a very long book indeed. If you look back over the charts you can see that this is a trend we've seen repeated many times.
Pound/Euro rates have been stuck in a range between around €1.12 and €1.15 but each time it reaches the top of this range, it only lasts a matter of days before the market corrects, and this is what we've seen happen again.
Clients that took advantage of our currency exchange services last week were able to freeze the rate while it was at a 9 month high. We don't just offer exceptional exchange rates that are significantly better than banks and other brokers usually offer, we also offer things like 'Forward Contracts' that allow you to freeze the exchange rate for a future date, by lodging a deposit of 10%. This is very useful for things like purchasing property overseas, as it protects you from adverse exchange rate movements and allows you to budget effectively.
If you need to buy or sell currency and would like to see what rate we can offer you, get in touch today.
Labels: Fixing exchange rate, Forward Contract, Pound/Euro falls