Euro Pound Exchange Rate Report – 10th May 2010
May 10, 2010 Leave a comment
Last week we witnessed a turbulent week for Sterling against the Euro with a 4.5% fluctuation in exchange rates on Friday alone. This equated to a difference of an astonishing £7500 when purchasing €200,000. The movements came following the UK election and the hung parliament verdict that came out of it. These sorts of fluctuations highlight the importance of staying in contact with your currency broker who can give you a consultation on your individual requirement helping to maximize your return by use of the many tools at our disposal.
The week had begun so well with the Pound opening at 1.1530 racing to a high of 1.1865 by Thursday. This was mainly down to the riots seen in Greece and the increased speculation of a credit rating cut for Portugal, Spain, Italy and Ireland sending the Eurozone into meltdown. The highs seen represented some of the best buying levels seen for 15 months as seen in the graph below.
The UK election then took centre stage and the hung parliament verdict was anything but well received by the currency markets. As mentioned earlier in the report the rate plummeted from 1.1845 down to 1.1357 in a shift seldom seen in the markets. The Pound did rebound in the afternoons trading session after Conservative leader David Cameron talked openenly of the potential for the Tories and Liberal Democrats to form a coalition to bring the UK through the crisis it has been in for some time.
The week ahead promises to be another volatile week as the backlash of the election will still be prominent in the news. The other news of note this week comes in the shape of the Bank of Englands interest rate decision on Monday at midday, and the industrial production figures released on Tuesday at 9:30am. Wednesday sees this months unemployment figures, a release known to cause high volatility depending on the reading. See below for a more detailed report on this weeks data releases.
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