Euro Pound Exchange Rate Report – 20th December 2010
December 20, 2010 Leave a comment
Last week we have seen a relatively powerful Sterling exchange rate, by recent standards at least, fall from a height of just below 1.20 to 1.17.
Thursday and Friday saw Euro-Zone Heads of State meet in Brussels, to discuss the Euro, the Euro-Zone support fund and financial-market stresses, and early week support for the single currency from Angela Merkel and Nicolas Sarkozy, may have been joint reasons for the boost in Euro strength against the Pound.
As ever, Quantitative Easing is a topic of choice for both the BoE and the FED, which will weaken their respective currencies, a prospect which could see Trichet smile, investor’s pull funds and all potential overseas property buyer’s panic, as taking advantage of a falling rate, whilst undesirable, is far more beneficial than holding fire and buying when it is lower. This was emphasised in trading last week, as exchanging £100,000 to €’s Monday would have seen you almost €3000 richer than those exchanging the same amount just two days later. Relatively speaking, holding for 48 hours may have cost you a swimming pool.
This week’s most important day of note is Wednesday, with the MPC Meeting Minutes and Current Account data being released. Better than expected figures for the UK Current Account would be good for the currency and we could see some regain of strength for Sterling. If there are funds to be repatriated, it may be worth your while exchanging sooner rather than later, so that you can take advantage of the lower levels.
The MPC Minutes will highlight which members voted for QE, if any, and how the Committee voted with respect to Interest Rates. More members voting for another round of QE, could see the austerity measure at the forefront of the BoE’s arsenal and rates could plummet. This emphasises the potential volatility of the markets and how important it is to remain in close contact with your xurrency broker.
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 and an experienced trader will be in touch to discuss your requirement and offer expert market knowledge.