Foreign exchange specialists Moneycorp highlighted a range of predictions from banks for sterling’s value against the euro which were made a few weeks ago.
They ranged from a sterling value of €1.14 to €1.52, a 39% variation.
“Really, the only thing we can be certain about in the market is uncertainty itself,” said Toby Woodward (above), Moneycorp’s corporate partnerships account manager.
He added the two currencies (euro and sterling) had showed only a 14.5% volatility in the six months to September.
Woodward said the global foreign exchange market saw $5.3 trillion traded each day with 85% involving the dollar. Almost all of this – 97% – was speculative trading, he said. “It means that the market is driven not on fact but by sentiment, by perception, by fear and by greed.”
Moneycorp's Toby Woodward: ‘Fear and greed drive the market’
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