Sterling suffered its biggest weekly loss against the euro in almost a year last week as the fragile state of the UK's economy started to be reflected in the markets.
We are approaching a key support level of 1.20 interbank as sterling continued its bad week on Friday dropping for a sixth consecutive day against the euro falling to 1.2060 - the lowest since April 2012, following the release of terrible manufacturing production data which showed it shrinking by 0.3% when growth of 0.5% had been anticipated.
Very difficult to say what will happen if we reach the 1.20 support level but if breached, we could see a rapid loss in the value of sterling against the euro or we could see sterling bounce and start to regain lost ground.
If you are making regular transfers then it may make sense to secure part if not all of those transfers for the next three to twelve months.
If you are making larger transfers either way (sterling into euros or euros into sterling) then it may be sensible to do the same thing by either securing all or part of the amount to be transferred. Remember we can secure rates into the future using a forward contract.
For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com
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