Euro Rates Before ECB Meeting

GBP EUR exchange rates look set for a roller coaster today tomorrow with two major events. The UK sees a debate in parliament over the Great Repeal Bill which will discuss the movement of EU law into British law to hopefully avoid any disaster scenarios. The issue for the British government is that there is only a very small working majority so any renegade conservatives who are not prepared to vote with the bill could create major problems for government.

Labour have already made clear that they will try and vote down the bill which in my view would create additional uncertainty although the general feeling is that the bill will go through.

The European Central Bank also meet tomorrow which could see major market volatility. The markets will be listening out for any words that suggest the central bank will look to taper its Quantitative Easing programme. The last few meetings have seen considerable market volatility to the extent that Mario Draghi has had to issue statements effectively saying the markets had misinterpreted what he had said. Any suggestion of tapering could see the Euro strengthen very quickly although the recent strength of the Euro could mean the ECB pauses until the next meeting.

Those clients with a Euro requirement either buying Euros or selling Euros would be wise to get in touch tomorrow morning to look at the options available to try and take advantage of any spikes which occur. The key here is to be proactive and have things set up ready if there is a big jump higher.

If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

For more news on foreign exchange rates and to request a free no-obligation quote visit www.currencies.co.uk