We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.
Hide

2016

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.