GBP EUR Rates Remain Near 7 Year Low

The pound remains close to a seven year low against the Euro this morning as uncertainties over both Brexit and the recent change of stance from the Bank of England keep the pressure on the pound. Although position papers from the government are being put forward with a total of twelve expected to be released in the coming weeks, the pound has struggled to climb higher over a lack of clarity of where Brexit will ultimately end up and whether a trade deal will or not be in place when Britain leaves the EU.

The Bank of England have also reduced the growth outlook for the UK economy and have signalled that there is unlikely to be a rate rise this year. The markets only a couple of months ago were beginning to price in the possibility of a rate hike in the Autumn of this year but this seems highly unlikely now. For any clients who are looking to sell Euros there is a great opportunity to be taken advantage of as things stand.

It’s not just the pound that is performing badly though which has helped see GBP EUR exchange rates fall to a seven year low. The recent improvement in the outlook for the Eurozone has helped strengthen the Euro. Stronger economic growth and also higher inflation have helped see the Euro make considerable gains against most of the major currencies including the pound.

The German election in September will certainly be one to watch as it could create added volatility for Euro exchange rates. German Chancellor Angela Merkel has a strong lead in the polls and is highly likely to win a fourth term which would be good news for Euro exchange rates.

Economic data is light as we end the week so focus will move to UK GDP data and inflation report hearings next week which could see the pound rally on stronger data.

If you would like further information on 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

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