Huge exchange rate volatility GBPEUR, GBPNZD, GBPAUD, GBPUSD

Monday 24th August 2015 
It’s incredibly volatile on the currency markets today. Just look at what has happened with Sterling/Euro rates, falling from 1.38 into 1.34's:
  

 
When I opened the trading floor this morning at 8am, GBP/EUR was at 1.38 where it ended on Friday. We have seen the rate drop throughout the day, and at 2.15pm it plummeted to as low as 1.3455 before recovering back into the €1.35’s. This is a huge drop and other currency pairs are seeing extreme volatility, due to global stock rout and economic uncertainty. 

The FTSE 100 has lost 10%, as investors dumped riskier assets and flocked to currencies seen as safe havens on fears about a slowdown in the Chinese and global economies. The Euro has been a huge benefactor, as usual safe havens like Sterling and the US Dollar are suffering. This is because the global slowdown means interest rates are no longer likely to go up in the UK or US any time soon. 

As the Euro gains significant strength, commodity based currencies like the Australian Dollar, New Zealand Dollar and Canadian Dollar continue to weaken as oil prices and other commodities continue to fall in value. 

Click here to view live charts for all currency pairs.

Sterling/Dollar has gone from $1.56 to $1.58 just today, as the Dollar weakens due to the global turmoil. Just look at some of the movements we've seen during trading today:

GBP/USD rises to $1.58:

GBP/NZD has risen by 10 cents in the last half an hour:

 

GBP/AUD rises from $2.16 to $2.22:

 

A panicked and interesting day on the currency markets. 

If you have a currency transaction to perform, then get in touch to find out more about the currency services I offer. From exchange rates up to 5% better than the bank, to tools such as 'Stop Loss' and 'Limit' orders that can protect you against volatility like we've witnessed today, you could save thousands by simply getting in touch for a quote and a chat about how my service works. 

Click here to send a free enquiry today. 

Why has Pound/Euro dropped to €1.39?

Wednesday 8th July 2015 
In today’s report I’ll look at the latest developments in Greece, the effect of today’s Budget statement on Sterling, and also why the Pound/Euro rate has dropped to €1.39. 

Pound/Euro drops to €1.39 

Since the start of the week, we’ve seen GBP/EUR exchange rates drop from €1.42 to €1.39 today. There are several factors affecting the Sterling/Euro cross at the moment, and after a quick look at the chart I’ll address each one in turn. 

What has caused Pound/Euro rates to fall? 

Sterling had been performing very well recently, rising on the back of some better economic numbers in recent months and the returning of a majority Conservative administration in May's general elections. The Pound had strengthened as a result, however now seems to be on the back foot. Here is my take on why Sterling has weakened off today. 

Greek deal - The Greek situation seems to be coming to a head, with Greece set to submit fresh proposals on Thursday, EU ministers meeting on Saturday to discuss, and a decision on Sunday before a looming deadline for Greece to make a €3bn payment to the IMF. This could well be the last chance for Greece, and many sources are optimistic a deal will finally be done. The uncertainty of the last few months had largely already been priced into the Euro, and so the single currency is starting to regain some strength on the possibility of a resolution. 

UK Budget – today George Osborne delivered his first conservative majority budget. The Pound had weakened this morning, and while there were some very positive things announced, in general it was a budget of austerity, and the fact that they are looking to go harder on austerity and start reducing overall debt soon bodes ill for the immediate outlook for the Pound.UK growth figures have been revised down, House prices are rocketing due to low supply, and this means that while the UK economy is performing very well, it’s not as good as some had hoped several months ago. This has taken the steam out of the Pound. 

Flight to safety – there are real problems in China right now, with the stock markets there in free fall. Investors are wary of any uncertainty, and this combined with Greece and very low commodity prices means investors are placing their funds in ‘safe haven’ currencies like the US Dollar, Japanese Yen and Swiss Franc. The Pound has lost out as people move their funds to safer places riding out the global economic uncertainty. 

Do you need to convert currency at the best rates? 

Exchange rates can move very quickly, and having an expert currency broker on your side can make a huge difference. From exchange rates up to 5% better than the banks, free consultations to discuss your currency requirement and strategy, to various contract types to help protect against adverse exchange rate movements, there are many positives to getting in touch to see how I can help you. 

The first step is to send across an enquiry, and I can then personally get in touch to discuss your requirements, explain how the service works, and provide you a quotation on your rate of exchange. 

Click here to send your enquiry now.