GBPEUR 3 month forecast

Yesterday President of the European Central Bank Mario Draghi hinted that future key monetary policy decisions will be made in October. The President was eluding to the quantitative easing program that has run for the last few years in a bid to stimulate and kick start the economy. With many economists stating growth has improved throughout Europe their is hype that the quantitative easing program will be cut in the upcoming months.

It is important to note if the quantitative easing program is cut (tapered) I expect major euro strength. 

Brexit negotiations are continuing to weigh down on the pound as UK and EU negotiations cannot come to an agreement about EU citizens rights. UK Prime Minister Theresa May has made it clear that the UK and European Court of Justice will part ways after Brexit which in my opinion means EU citizens wont be protected and this is another stumbling block negotiations needs to overcome.

Over the next 3 months I expect exchange rates to fluctuate between 1.05-1.10, as I wouldn’t be surprised to see further sterling weakness. However with European exports becoming to expensive, spikes in the market could occur throughout the month when Draghi tries to talk down the currency.

For further information in regards to currency feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

 

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