Is now a good time to sell US Dollars and buy Euros?
The market has stabilised over the past couple of weeks, and the Dollar strength has started to slow down.
Is now a good time buy Euros?
It is still an excellent time to buy Euros. The market is still at 5-year highs.
Current levels have rarely been seen in the last 20 years.
Over the last 12 months, the US Dollar has gained 16% against the Euro.
What to bear in mind:
As you can see from the chart below, over the past 7 years, we have reached the current levels on numerous occasions. Every time the market has failed to move higher during that period before rebounding sharply.
The Fed has indicated that they are not planning to raise interest rates by more than 0.5% at a time. Whilst we do expect more US interest rate hikes throughout 2022, the Fed appear to be taking a more cautious approach than previously expected.
The Russia/Ukraine conflict continues to support the US Dollar. Once we see an end to the war, we could also see an end to dollar support.
Anyone looking to move to or buy property in Europe will have started pricing within the last 12 months. As you can see it is cheaper now to buy Euros. It is, of course, possible the rate could continue to improve. However, this may be limited, given the significant gains we have seen over the past year.
Speak to Spartan FX to find out your options and how you can take advantage of these recent rate spikes or how we can protect your budget.
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