I hope those New Year resolutions and fitness regimes are holding up better than the Euro at the moment. Back to eating biscuits? I thought so. The EUR has slipped to a 10 year low against the US Dollar in recent trade. It has broken the support level at 1.18 the figure on a couple of occasions now and I expect the downtrend to continue. My call of 1.10 doesn’t seem so quite far-fetched now. With Greece an ongoing risk/headache and with growing calls for Sovereign Bond purchases from the ECB then the EUR will remain under pressure for the foreseeable future and most likely the rest of 2015.
GBP/USD? It has had a slight bounce up today although with UK inflation expected to slow to below 1% I expect Sterling to remain under some pressure for the time being. What does that mean? Those dizzy days of 1.60 won’t be around this year. I maintain my call of GBP/USD trading at 1.45 this year and then settling to a level of 1.52/1.53 by the end of 2015. So, are you a USD buyer? If so, it may be an idea to think about covering off your exposure around the 1.50 level. Yep, that doesn’t sound great does it? It does sound better than 1.46 though. Please contact myself or one of the trading team to have a conversation and implement a strategy or execute a transaction.
If you are a seller of USD into GBP then the New Year is the gift that keeps on giving. I would look to implement market orders to take advantage of any sharp moves lower. Send me an email and we’ll discuss appropriate levels to aim for.
GBP//EUR. I expect a gradual climb higher so don’t expect us to see any sharp moves higher. Stagger market orders at different levels to take advantage of any intraday moves higher. There will be some moves lower dependent on how the market takes data this week on the pound. If you are a EUR buyer it may be wise to either cover off at current levels on SPOT or alternatively send me a message and we’ll aim for a slightly higher than current market rate for you with a market order.
Have a great week.
Written by Liam Alexander