Euro Pound Exchange Rate Report – 8th February 2010
February 9, 2010 Leave a comment
8th February 2010
Last week was a relatively stable week for GBP/EUR exchange rates showing little more than a 1% movement between the high and low point of the week for the currency pairing. The slight movement seen in the market came after the Bank of England’s decision to hold interest rates and pause their much-publicised Quantitative Easing program. This may have been seen as a positive in many investor’s eyes however the market did not reflect this. This linked to the rolling debt problems in Greece and Spain; makes it even more surprising that Sterling has failed to make significant gains against the single currency. With a potentially difficult week ahead for Sterling exchange rates, the importance of staying in close contact with your exchange rate broker is imperative as any bad data could damage the inherently fragile Pound and greatly magnify the cost of overseas purchases.
Opinions released yesterday evening by the Ex-IMF chief economist, Simon Johnson, said that the UK should be viewed as lying in the same category as the Spanish and Greek Economies. The debt problems in these two economies have been heavily highlighted in the last week, and any similar trend seen in the UK could have catastrophic consequences for the Pound. Any clients looking to purchase Euros, may wish to investigate a forward contract with their exchange rate broker. This allows the client to protect their interests by purchasing ahead with a deposit at the prevailing rate for anything up to two years in advance.
Looking to the week ahead we have figures due for; Germany’s consumer price index, the UK’s trade balance and most importantly on Friday the GDP estimate for the fourth quarter in the Eurozone. As demonstrated earlier; data releases do not always have an obvious and immediate impact within the currency markets and further underlines the relevance of speaking with your currency broker.
If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open a currency exchange account today.