Best day to Buy Euros - that was yesterday

Hi all,

what a difference a day can make. I like many others thought that the pounds to Euros exchange rate was finally going to go above 1.3000 and be a great time to Buy Euros - it wasn't to be. Foreign Exchange Traders were buying Euros up above the 1.2800 level as the currency market works decided to sell Euros straight away.

The main problem for the Pound is that it just wont go up!

The old saying you never go broke selling the pound still applies and with the stream of bad news can you blame the foreign exchange markets of punishing our beloved currency?

Today it was the Bank of England talking in riddles about the current inflation and interest rates outlook.

On the right hand inflation is running around 5 percent therefore we need to keep interest rates where they are otherwise we end up being a Banana Republic (never thought i would be able to quote Paul Keating former Australian Prime Minister).

On the left hand consumer and business confidence, Housing prices and growth are headed to down the plug hole. Don't worry about getting a mortgage anymore as housing prices are set to fall the same way as the French and Spanish property markets have. So this means that the Bank of England needs to cut rates.

WRONG

In true British style we are going to sit on the fence!

Personally i believe we need to cut interest rates 0.50 percent next month - get consumer and business confidence bask as quickly as possible than regin in inflation. It seams to be working for the US Dollar and economy.

Only time will tell

and if you need to Buy Euros - best exchange rates contact us

Bye for Now

IMS Foreign Exchange

Pounds to Euros currently 1.2525

Pounds to US Dollars currently 1.8700

Pounds to Australian Dollars currently 2.1334