Today’s News:
- 22-month high: Euro selling frenzy creates a 22-month buying opportunity for pounds! Explore why investors are flocking to seize this rare chance.
- Brace for volatility: US and UK decisions ahead – stay ahead with our currency insights. Get ready to navigate through uncertain times with our expert analysis.
- Don’t miss out: Learn how to manage election-driven currency risks and save up to £10,000 on a €250,000 purchase! With the UK vote looming, secure your currency strategy now for peace of mind.
In-Depth Report:
The single currency has continued its struggle in 2024 following the French election announcement. With the European Central Bank also cutting interest rates last week and indicating future cuts, investors have been selling the Euro, making it the best time to buy Euros with pounds in 22 months.
This volatility for the pound-to-Euro and other pairings does not seem to be disappearing anytime soon, with a very busy economic and political calendar coming up. This increases the chance of the rate moving higher or lower, reminding us of the importance of a currency strategy, particularly when dealing with large amounts of money.
Tomorrow marks the latest US interest rate decision, which significantly affects not just the US dollar, but also the pound, Euro, and arguably almost all other currencies directly and indirectly. The US dollar is by far the most heavily traded currency globally, and changes in US interest rate expectations can lead to swings in the US dollar, influencing other currency pairs.
Other important dates include June 20th, with the latest UK Bank of England decision. While no change is expected, it is still an important time for the pound.
We then have some crucial political events, starting with the first round of French election votes on June 30th, followed by the UK election on July 4th, and the final French election run-off on July 7th.
We are just 19 days away from June 30th, and with plenty of documented volatility around the time of elections, both before and after, having a currency strategy is arguably more important than ever.
We are here to help you navigate and manage currency risk through various contract options, including the forward contract to fix rates for up to one year, and a Limit order to automatically trade at a higher rate if achievable.
Our research shows a 5% currency volatility in the run-up to and after the past six UK General Elections, and with just 23 days until the UK vote, an increase in volatility is expected. On a €250,000 purchase, this translates to a difference of £10,000, making it worthwhile to consider options to limit risk.
If you are considering a currency transaction in the coming weeks, a consultation with your account manager and one of our team could prove very worthwhile, offering peace of mind and certainty.
