GBP/EUR Forecast – Boris Johnson’s Speech Could Impact Sterling’s Value (Matthew Vassallo)

Sterling has struggled to make an impact against the EUR during the early part of the trading week, with the single currency finding plenty of support around 1.13.

The Pound had threatened to make another move last week following some positive comments last week from the Bank of England (BoE).

BoE governor Mark Carney talked up the prospect of further interest rate hikes if the UK economy stayed on the same track, citing rising inflation as one of the key reasons they could look hike rates.

Whilst he was also fairly positive about the UK economy as a whole, he did draw attention to the fact any major advances were being handicapped by the uncertainty surrounding Brexit. The UK has also gone form the fastest growing economy in the G7 to the slowest, news which is hardly likely to boost investor confidence in the short-term.

This is why it seems that every time the Pound takes a step forward it faces a huge amount of resistance and whilst it has found a foothold against the EUR in recent weeks, any sustainable increase up to or through 1.15, looks unlikely in the short-term.

Looking ahead and there is a host UK inflation data today, which based on last month’s increase does not necessarily bode well for those clients hoping it will have  a positive impact on Sterling’s value.

Tomorrow could also be key with UK Foreign Secretary Boris Johnson speaking on Brexit and his comments are likely to have an impact on the currency markets.

If you have an upcoming GBP or EUR currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

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