By Luke Dyson
With the current market having been within a cent of the 12 month high for GBP/EUR over the last few weeks, it is clear sterling still doesn’t have the strength to break through to new levels.
We have seen a massive amount of intraday volatility with the market jumping following anything coronavirus being announced.
Yesterday we have seen just over a half cent drop for GBP/EUR following data being released around lockdown extensions and travel restrictions being tightened with a £5000 fine for anyone who breaks these rules.
Following this it has created a large amount of uncertainty to add to the already increasing pile: whether the UK will be unrestricted by June 21st.
However following this sharp drop GBP/EUR recovered as not all is doom and gloom just yet as an announcement will be made on the 12th April with a plan moving forward.
At present the UK seems to be gaining traction with the vaccine programme and the case numbers are plummeting, following this it is giving the UK a bit of hope that we are on track to put all of this behind us.
However with France and a few other European countries struggling to contain the virus recently, it has still left the door open for the UK to hit a snag before it gets to the light at the end of the tunnel.
In terms of where the market is at current it’s an excellent buying opportunity and over 10 cents higher than where we were this time last year, on a £100,000 transfer to euros back then compared to now you would be looking at €10,000+ more euros.
The end of all of this is in sight however it is not a done deal and the down side risk is still at bay, please contact your currency consultant today to discuss the rates and get yours locked in to limit any currency exposure from anymore negativity about the virus.
With the market already 10 cents up is it worth risking waiting for a marginal gain with a sudden drop at any point following a lockdown extension or announcement.