Derek Taylor targets the “Forward Order” this week at €1.1500 on the Euro

Derek Taylor, our very own foreign exchange expert, is recommending that Travel Money Club members buying Euros this week should target their “Forward Orders” at €1.1500 for a great deal.

The “Forward Order” feature is exclusive to Travel Money Club and allows members to automatically buy currency when their target exchange rate is reached. They simply tell the us what currency to buy, what exchange rate to buy at, and the payment card to use. Then if and when the target exchange rate is reached, we automatically execute the order and deliver next business day* (for orders completed by 1pm). As it all happens in the blink of an eye, even if your target rate is only achieved for a couple of minutes, we will still execute your order!

Derek told us:

The US Dollar was bought last week by the market as Trump’s Trade Wars, spooked investors and prompted a general flight to safety. So EUR/USD and GBP/USD moved lower on a stronger Dollar. The picture for cross currency pairs like GBP/EUR, were somewhat more confusing, especially those involving the Euro. A cross currency pair is any currency pair that does not have the USD as a component, so GBP/EUR, EUR/ JPY etc.

Sunday (yesterday) saw the much anticipated Italian General Elections.

The vote on Sunday marks the political ascendency of two relatively new political parties that had until recently been considered fringe: the anti-establishment Five Star Movement (M5S), and the anti-migrant and Eurosceptic League, formerly known as the Northern League, both of which are performing far better than expected.

Silvio Berlusconi’s (yes, he is back from jail) Centre Right, may be second to the Centre Left coalition led by Matteo Renzi. But a hung parliament beckons, which has actually been anticipated.

What worries Euro watchers, is that the Italian voters are backing the populist Five Star and the anti-migrant and Eurosceptic League. Legally, it would be very difficult for Italy to have a referendum on leaving the Eurozone, but the strength of the Eurosceptic and populist vote is nevertheless a serious worry. We are seeing this reflected elsewhere in Europe.

Elsewhere in Europe, Germany’s Angela Merkel will serve a fourth term as chancellor after the SPD membership endorsed entering a coalition with her party.

Events for the coming week to watch out for.

Monday 5th March – 9.30am UK Purchasing Managers Index (PMI). Above expectations.

Tuesday 6th March – Halifax House prices 8.30am. US Durable good 3pm.

Wednesday 7th March – 10am. EU GDP numbers.

Thursday 8th March 1.30pm US Jobless claims.

Friday 9th March 9.30am UK Trade balance and manufacturing output.

Suggested level to buy holiday Euros.

We are now suggesting buying holiday Euros at GBP/EUR 1.1300, if possible. Our longer term range of GBP/EUR 1.1200-1.1500. has been tested on the downside, and is worth monitoring.

Please try our rate tracker and forward order facilities, and let us watch the markets for you.

Remember, breaking news moves markets!

Disclaimer: Opinions expressed are solely those of Derek Taylor and do not necessarily express the views or opinions of the Travel Money Club or any other organisation mentioned herein. These opinions are not intended to be a source of advice and any action taken as a result of this information is entirely at the reader’s own risk.

ABOUT DEREK TAYLOR

Derek is Director and Co-Founder of the Travel Money Club, as well as CEO of Taylor Associates (International) Ltd, one of the City of London’s foremost financial and market training organisations. Taylor Associates was established in 1993, specializing in derivatives, capital markets, risk and treasury training. He has personally trained in banks, brokers, asset managers, hedge funds and corporations both in the UK and overseas.

Derek’s career started in Midland Bank Group Treasury working across a broad product range including Money Markets, Foreign Exchange, Equity and Fixed income. He rose to the level of senior Director, before moving to Lehman Brothers, and then Bank of America working both in London and NY.

Derek has primarily worked as a trader, both inter-bank and proprietary, but has also spent some years as an inter-bank broker, running desks at two of the world’s leading brokerage houses, Tullett Prebon and Harlow Butler Savage (now part of the ICAP group).

Derek is a frequent speaker on Financial Markets subjects all over the World, and is an Associate of the Chartered Institute of Bankers (ACIB), a member of the Forex Association (ACI), and a member of the Society of Technical Analysts (MSTA).

* Please note that a small number of currencies are not available for next business day delivery. The actual delivery date will be clearly displayed in your order acknowledgement.

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