In fact, it may be deliverable foreign exchange, but deliverable foreign exchange rates are a good indicator of the market value of a currency and can certainly be used to measure the values of major currency pairs on electronic trading platforms.
Today, certain foreign exchange firms across the UK are offering the euro against the pound at almost one-to-one rates. This also means that the gap has closed between the three major currencies – the British pound, the US dollar and the euro – which, if these exchange rates are any indication, are worth almost the same.
Caxton FX, a major British foreign exchange company, offers a rate of 0.9915 euros per pound at Luton and Stansted airports.
FinanceFeeds spoke to a UK investor today who is currently buying a holiday home in the Algarve region of Portugal to rent out to British tourists. He used Caxton FX to transfer the capital (€170,000) to buy the house and received a rate of €0.98 per pound.
An inquiry to MoneyCorp, another forex trading company that FinanceFeeds offers today, revealed a large gap between the sites and companies. MoneyCorp offered FinanceFeeds an exchange rate of 1.11541 this evening.
There is currently some volatility in the EURGBP pair and the pound has gained some ground. However, it is clear that at certain points during the trading day and at certain delivery locations, parity does indeed exist, pointing to the lowest GBP value in three years.
In fact, there is great confidence in Britain’s future after Brexit and it will indeed be interesting to see how long this peg to the euro lasts before the pound suddenly regains strength.
Source: Google Finance
