Euro Pound Exchange Rate Report – 15th March 2010
March 15, 2010 Leave a comment
15th March 2010
The past week has been very flat for the Sterling-Euro currency pairing with only a 1.7% shift between the highs and the lows of the week on Monday and Thursday respectively. The general feeling has been that Sterling, broadly speaking, has gained during the week as growing speculation around various Euro states being on the ‘chopping board’ continues. This includes but is not limited to Portugal, Italy and Spain, all having been given negative mention by ratings agencies in recent times.
However, with few data releases for both the UK and the Eurozone last week, volatility has been at a low for the two currencies. This low volatility in the currency pairing highlights the benefits of placing a ‘Stop Loss’ or ‘Limit Order’ on a contract with currenct broker. Talking to your Account Executive and knowing where to place a minimum and/or maximum on your exchange rate would help to optimise your purchase. This would safeguard against any potential loss should the market drop and ensure that you are able to take advantage of any upward spikes without having to stay glued to the news.
In contrast to this past week, the one ahead holds much uncertainty for the Euro. On Tuesday, those countries participating in the European Monetary Union will make a decision on whether to bailout Greece, whom are currently in the midst of a large debt crisis.
If Germany and France decide to show solidarity with Greece, it would indicate a positive outcome for the Eurozone economies as a whole and those clients looking to sell Euros.
Together with the important release on Wednesday of the Bank of England minutes, should we see any more rumour or mention of Quantitative Easing, we are likely to see at least a 1% drop in GBP/EUR as seen on all previous occurrences.
Those with impending purchases in the Eurozone might look to consider booking a Forward contract with the a currency broker. By placing a 10% deposit, clients can eliminate the risk of an unstable GBP/EUR rate by locking in a price today for a transaction that will take place in the future, up to maximum of two years. Visit our main website to see live currency exchange rates.