pound fell to its lowest level yesterday against the euro

Good Morning

What a difference a day can make! The pound fell to its lowest level yesterday falling below the 1.2400 mark. It then pushed up to 1.25 before moving up to 1.2550 overnight. This happened after an opinion poll showed fading support for Scotland’s bid for independence from the UK.

Sterling climbed versus all of its 31 major peers after a poll by Survation for the Daily Record newspaper in Glasgow put the ‘no’ lead for the September 18 referendum on Scottish independence at six percentage points when excluding undecided voters. It found 47 percent support for the ‘yes’ campaign and 53 percent against independence.

The results followed a survey by YouGov Plc last weekend that put the yes-vote side ahead for the first time, a swing that sent the pound tumbling.

Today’s economic calendar is relatively light in terms of data. This morning we have had the inflation readings for both France and Germany although not having any real affect on the euro rate.

Having taken some timeout yesterday afternoon to have a look at Bloomberg I came across this little article that may be of some interest. Barclays PLC lowered its one-year euro forecast to the most bearish of Wall Street banks as the currency unions economy deteriorates and as increasingly aggressive monetary policy signals further depreciation. They say the euro will weaken to $1.27 in a month , to $1.22 in three months and $1.10 in a year.

There is also talk that we could see the pound euro rally to 1.30 before year end if the Scottish independence does not go through.

Foreign Exchange currency rates:

GBPEUR 1.2548
GBPUSD 1.6223
EURUSD 1.2928
GBPSEK 11.523
GBPAED 5.9594
GBPAUD 1.7767
EURGBP 0.7967
GBPJPY 173.52
GBPTHB 52.200
GBPCHF 1.5177

Please contact me to discuss SPOT pricing, FORWARD pricing or alternatively placing MARKET ORDERS at pre-desired rates.

P.S. WHY NOT TAKE ADVANTAGE OF THE STRONG USD AND LOOK AT SECURING GBP ON A FORWARD CONTRACT FOR UP TO 2 YEARS IN ADVANCE. WE ONLY REQUIRE A 3% GBP DEPOSIT TO SECURE A RATE GIVING YOU PEACE OF MIND AGAINST RATE FLUCTUATIONS.

Kris Charalambides
Senior Account Manager
kris@imsfx.co.uk
www.imsfx.co.uk
Direct Dealing Line : 0207 183 7928
Dealing Desk : 0207 183 2790