By Alex Ellis

Today has seen Sterling Exchange rates jump massively overnight, over the course of yesterday this movement attributed to an increase of 0.5% and trading levels reached the highest they have been for four months. For those looking to buy Euros then you may want to conduct your currency purchase today rather than risking the rates dropping over the weekend. If these levels fall then they could fall for as long as 6 months, as has happened in the past. The question to ask yourself is: are you willing to risk this happening again?

 In U.S. news the unemployment benefit claims rose higher than expected to 444,000, and therefore this has caused the Dollar to lose strength against Sterling, this is the first decline in three months and is refreshing news for anyone looking to buy Dollars. Some analysts believe that this could be the first sign we may enter into a ‘double-dipped recession.’

This would be terrible news for all currencies involved, (when we first entered into the recession Sterling almost hit parity against the Euro), and therefore there will be further risk of this if the recession was double-dipped.

In order to minimise your risk you may wish to contact a currency broker in order to decide how to conduct your currency purchase, especially as the outlook of the currency market is still looking volatile.