By Luke Dyson
Since the beginning of June we have seen GBP/EUR in a very tight range of two cents. A range-bound market is where the price fluctuates between two levels and is classed as a sideways moving market as there is no clear trend. Although there have been days of volatility, the market has not been able to break out into a trend resulting in no new highs or new lows being made.
Typically the only way the market will be able to jump out of this technical pattern is after political or economic stimulus. The next major piece of eco data for the pair will be today which is the eurozone inflation figures being released at 10:00am. This data could have a significant impact on the market as it will give a massive hint whether the European Central Bank will likely raise interest rates again on the 14th of September. Following on from this the next key data release for sterling would be the 20th September for inflation figures then swiftly followed by an interest rate decision the 21st. Both of these releases have significant power when it comes to moving the market.
In terms of where the market is at present, sterling is still holding its strength against the euro and is a very good buying opportunity given where the market has been previously this year. If you have an up and coming currency requirement please get in touch with A Place in the Sun Currency to consider taking advantage of these rates and limiting your risk. If you have got a bit of time yet till you require your currency and would like to get a strategy in place, a Limit Order is very effective in these sort of market conditions with the current day to day volatility.
This is where we place a target rate into the market, if the market shoots up to this rate we will automatically secure this rate for you. This takes advantage of fast market spikes but also allows currency to be purchased outside typical working hours. This can be very beneficial providing the market moves in your favour, if the market moves against you it leaves the door open for the downside and could cost your more as you wouldn’t have the current rate secured.