How will Euro/Sterling currency fluctuations affect your ecommerce business?
It’s clear that ecommerce SMEs with international concerns trading with the Eurozone and Transatlantic need to be ultra concerned with the fluctuations in the markets and currency exchanges we’ve seen this week.
Luke Trayfoot of Worldfirst says: “We’ve seen some pretty remarkable developments in the currency rates in the last few days, and particularly on Monday, which have seen some serious strength for the Euro and serious weakness for the US dollar. The big winners are those etailers that are selling into Europe, who can make the most of these massive moves in Euro’s favour.
In a nutshell, the fears about a China-led global slowdown have seen major stock markets falling off, with GBPEUR now trading at its lowest level since May. Meanwhile as the US dollar weakens, GBPUSD is at its highest since the end of July.
Just five days ago, GBPEUR was trading at 1.42, with £100,000 worth €142,000. At the time of writing, it’s down at 1.351, with £100,000 worth €135,100.
For those repatriating funds from their European marketplaces to bank accounts back in the UK, many online sellers will be clamouring to fix the rate right now to make sure they can make the most of this sudden turn in the Euro’s favour.”