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Posted December 8th, 2015 by Charles Purdy

Busy December expected to continue for the currency markets – plan your strategy now!

Unlike many industries, we at Smart Currency Exchange will not be winding down for the holidays; in fact, we expect markets in December to be significantly affected by the volatility that has characterised 2015.

We have already seen one central bank decision this month have a significant effect on the major currencies that we deal with – sterling, the euro and the US dollar – and further news next week is expected to bring about more sudden and significant movement across the currency exchange markets.

Last week, the European Central Bank (ECB) President Mario Draghi was expected to extend the Quantitative Easing (QE) programme he introduced in January – after many hints to this end. In the days leading up to this announcement, the euro fell against a strong sterling and even stronger US dollar. However, on the day, instead of increasing the monthly purchase amount of the programmer, they actually only extended the period of QE by six months. This reality caught investors out, causing the euro to strengthen against both sterling and the US dollar.

Speaking of the American currency, the next week or so is also expected to bring final news on the fate of the widely debated US interest rates. Much talk has surrounded this possibility of a rate hike over recent months, as the official rate has been sitting pretty at 0.25% since 2008 – and it certainly seems as though this is imminent. Chairperson Janet Yellen is expected to shed more light on this on Thursday – which will have a significant impact on dollar markets.

These centralised events will certainly have ramifications across the markets, and we are recommending that all our clients who have an upcoming currency need (especially across these three major currencies) get in touch straightaway to plan a currency strategy for the coming weeks – not only to ensure that they maximise funds, but also to remove the worry of currency rate movements over this busy Christmas period.

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