Yesterday saw sterling gain significantly, with GBP/EUR breaking through the psychological level of 1.2500 (IB) in the morning session, up by 1.18%. There was little correlation to this as there were no fundamental data releases. The appreciation appeared to be due to investors pulling out of their positions, as it is considered that GBP was significantly oversold last week. Initial gains cooled for the rest of the afternoon session and GBP/EUR has been trading in the new range of 1.2456 (IB) to 1.2488 (IB).
Brexit fears continue to loom, and whilst many countries have kept quiet about their stance for fear of being accused of trying to influence the referendum, Germany has spoken out. A German think tank yesterday warned the UK not to expect an easy ride in negotiations which will certainly add fuel to the fire for the ‘remain’ camp.
Today we have seen the release of German final CPI and German WPI (forecasted and posted at .8% and 0.3% respectively) which could prove to be good precursors for the Eurozone CPI data due out later this week.
Euro buyers will be pleased to see that UK inflation came in at and improved 0.5% this morning, the highest inflation level the UK economy has witnessed in over a year.
Aside from this we have a fairly quiet week ahead for the Eurozone as far as data releases go. Any further volatility is inspected to come following significant US data or concerns over the ‘BREXIT’
Brits looking at buying in France may consider exchange rates at current levels quite low, however, we do feel there may be more risk to the down side and the closer we get to June 23rd, the more sterling could suffer. Clients can lock in their exchange rate for a period in the future with a Forward Contract, eliminating any possible risk that their dream French property could become more expensive.
Why use FC Exchange?
FC Exchange is a foreign exchange specialist that typically saves clients up to 4% on exchange rates compared to transferring money internationally through a bank. FC Exchange is an FCA authorised E-Money institution (FRN: 900205), having a “higher” security permission with the Financial Conduct Authority than an authorised payments institution would.
FC Exchange provides a boutique-styled customer service, offering clients a single, dedicated point of contact.
Further, for your assurance, FC Exchange offers a Best Exchange Rate Guarantee and aims to provide clients with a service that is not only easy to use, but offers you peace of mind.
Clients can contact FC Exchange’s Sam Edmanson on email@example.com or to open a FREE no obligation trading facility (takes two minutes) click the following link and Sam Edmanson will be in touch to discuss any requirements https://secure.fcexchange.co.uk/register/personal
Also published on Medium.