Euro Currency Round Up
Published: Wednesday 11 May 2016
The Advent of a EU membership vote has caused the Sterling-Euro exchange rate to become one of the most volatile in the financial market. If you are buying a property in Europe or transferring large sums to a EUR bank account in the near future, managing the risk of the British public doing the opposite to your expectations in the EU Referendum is a key aspect. The currency trading range for GBP-EUR exchange rate is from €1.23 at the bottom to €1.29 at the top. There is a broader range, if these levels are breached that extends to €1.20 and €1.30 but the overall trend is lower.
For EUR Buyers
You should be targeting any visit to the €1.29/1.30 area in the short term. This is perfectly possible with all the market volatility. If you are using a hedging product to protect against further declines, €1.23 is the short term support and €1.20 is the outer edge of this range. Below there, the market will most likely slide to €1.18 quite quickly.
For EUR Sellers
As long as this pair stays below €1.30, the downward trend is still in place. There is no doubt trades are targeting €1.23 because the market bounced sharply from that level on its last visit. If that is broke, €1.20 is the next logical target and below there, €1.18 would follow but that depth of decline is not expected right now. However, as we near 23rd June, the polls will have a greater influence and automated orders at these lower levels could well prove useful.