Euro Pound Exchange Rate Report – 20th September 2010
September 20, 2010 Leave a comment
Sterling exchange rates declined to a six week low against the Euro last week and Sterling also lost ground against the majority of currencies, after retail sales data in the UK unexpectedly declined for last month.
In the past week we saw GBP/EUR rates as low as 1.1956 and as high as 1.2080 a difference of 1%. On a €250,000 is a difference of over £2000.
We have seen a range between the 1.19 and 1.22 mark over the last six weeks which is very stable considering we saw huge volatility this time last year over the same time period as rates got as high as 1.1865 and as low as 1.10.
Looking at all the above it seems a good time to buy or sell your currency as we are starting to see more consistency within the currency pairing making your purchase a lot more secure over the coming months.
One way of securing your currency is by locking into a ‘Forward Contract’, which allows you the client to obtain a rate of exchange for anything up to two years in advance protecting your requirement against any pitfalls within the market sector. This allows you to sufficiently budget for your property or purchase.
Looking to the week ahead only the BOE (Bank of England) minutes could upset the rates. However in recent months we have seen voting at 8-1, which means one member of the MPC (Monetary Policy committee) has voted for an interest rate hike. If we see something slightly different such as a 9-0 we may see Sterling lose ground against the single currency. If we were to see a 7-2 as we may, Sterling could gain against the Euro.
These points raised emphasise the importance and necessity to remain in close contact with your currency broker, as, evidently the market will remain volatile as the week progresses. The smallest change in exchange rates can lead to huge differences in transactions, so utilising the knowledge and professionalism of a currency broker can help to save you thousands of Pounds.
If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open an exchange rate account today.