Events that could impact GBPEUR exchange rates (Dayle Littlejohn)

The main economic talking points at present which have the potential to have a major impact on GBPEUR exchange rates are if the European Central Bank  makes adjustments to the quantitative easing program on October 26th and whether the Bank of England will raise interest rates on November 2nd.

Members of the European Central Bank including the President Mario Draghi, have hinted that decisions could be made in October. However inflation numbers fell last month therefore I don’t expect the ECB to make cuts this month. Nevertheless the chances that they will hint towards making cuts in the near future are high, therefore this event could lead to euro strength.

Even though GBPEUR exchange rates have been on the decline in recent weeks, the market has priced in that there is a strong chance the Bank of England will raise interest rates on the 2nd November.  Due to the pounds surge throughout September I expect some of the inflationary pressures to have been curbed. Couple this with a poor run of economic data throughout October the likelihood of an interest rate hike I believe have diminished.

If my predictions above materialise I expect GBPEUR will fall below 1.10 throughout November. Good news for any clients selling euros to buy pounds. 

Short term many of the ECB members are speaking today. Know doubt one of the members will be quizzed about quantitative easing and interest rates. Speculators will be watching closely to see whether any hints are made to tapering. If you are converting GBPEUR short term, today’s event could have a major impact on the exchange price you receive.

If you are converting GBPEUR in the upcoming months and are looking to achieve competitive rates of exchange whilst receiving regular economic information feel free to email me the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with the options available to you along with the process of converting currency. My direct email address is and I look forward to receiving your email.

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