Wednesday, 6 May 2015

Wednesday, 6 May 2015

GPB/EUR drops into the 1.35’s

Welcome back after the May bank holiday and hello election week. After last week’s movements the question that will be on everyone’s lips will be which way will the rates move next? As you can see from the graph below we started the week at almost an 8 year high up in the 1.40’s, to then be ending the week in the low 1.35’s, a movement of over 5 cent between the cross. The 3% movement can be put down to poor UK data and positive news out of Greece. The UK saw both GDP figures and manufacturing PMI come in under predictions, knocking the pound off its perch.

So will the rates keep falling?

One of the reasons rates were holding at the €1.40’s were over concerns surrounding the Greek debt situation and their repayments, the euro had been struggling against its counterparts as a result. In fact the Eurozone’s economy is looking much more robust, their QE programme is beginning to have a positive effect and countries such as Germany are now posting positive figures. Last Wednesday saw Greece receive some respite from the ECB as the central bank lifted the cap on the emergency liquidity assistance by a further 1.4 billion euros to 79.9 billion, cooling off fears of a Greek default.

It’s unclear which way the rates will go but if you have an upcoming Euro requirement contacting our dedicated brokers at Foremost Currency could just save you thousands.

So what does this mean to you?

In these uncertain times in the currency markets it is key to keep in touch with our expert account manager at Foremost. They can help you navigate the currency markets to make your money go further. One option available to clients is a forward contract; it can help protect you from adverse rate movements and is useful for managing your budget. You can set the price now for a transaction that will take place up to two years in the future, allowing you to fix the exact value of the currency to be paid regardless of market fluctuations.

Adam Bobroff
Director & Dedicated Account Manager for Allez-Français
The Foremost Currency Group
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