EDITOR’S NOTE: 2015 kicks of with the Pound hitting a seven-year high against the Euro. Foreign currency exchange specialist Luke Trevail looks at the factors driving exchange rates, and what the near future might hold.
The new year continues to bring big, new issues in Europe which is giving those of you looking to invest into Spain an opportunity to buy funds at the very best rates that have been available in over 7 years.
The problems in the eurozone continue with Greece playing the ‘will they won’t they game’ of potentially exiting the union which is weighing heavily on the single currency. The introduction of Quantitative Easing last month has hurt the euro further and may be the real reason over the coming months why the market could continue to favour those of you who have euros to buy from Sterling.
If I could offer tip, it would be that becoming familiar with market volatility is key moving forward.
It seems that the euro is on the brink of a further fall as the much expected cracks in the economic picture become bigger and deeper than the ECB may have thought. The pound is also basking in the relative sunshine of a far more rosy looking UK economy. The continued weakening of the Euro and rampant pound has meant just one thing so far this year. Market movement. We’ve seen a near 10 cent move upwards since the 1st January and more looks likely.
Of course, it’s the same, scary story for those of you who still hold euros to move the UK. That is that you’re better placed to disregard the hope of rates getting any better and sell sell sell the euros as soon as you can. The rot has set in and it’s seemingly time to jump ship.
Clearly it remains a difficult time to try and second guess the market and trading should be done cautiously with the guidance of your currency broker.