GBP/EUR best exchange rates – Slight drop in Pound value away from multi-year highs (Joshua Privett)

GBP/EUR exchange rates took a small hit this morning following terrible retail sales figures released for the UK economy, but only putting a slight dent in the mammoth gains made for Sterling against the single currency over the past 5 weeks.

GBP/EUR has risen by more than 10 cents as a result of both artificial and very real influences on the rates of exchange.

One of the real, and the most devastating, reasons why Euro value has fallen so far in such a short space of time has been the terrorist attacks in Paris. The ongoing situation with the police raid on a northern Paris suburb looking for the mastermind of the attacks is also keeping increasing pressure on the Euro.

Events in America have been the main driver of this GBP/EUR rally. As the USD/EUR is the most heavily traded currency pair in the world, when the value of one rises, the general rule of thumb is that the other loses value across the currency markets.

Explicit hints that the US will be the first major country to raise interest rates since the recession by the end of this year are what is causing this severe bout of US Dollar strength. This in turn is causing significant capital to flow out of the Euro and improving GBP/EUR rates of exchange.

This has already been priced into markets so the confirmation of this when December comes around shouldn’t help Euro buyers further. Furthermore, as these events are nothing to do with any changes in the performance of the European or UK (quite the opposite with the data on the retail sector posted today), these are unlikely to be a permanent feature on the currency markets.

I strongly recommend that anyone with Euros to buy should contact me on jjp@currencies.co.uk to discuss a strategy to maximise your Euro return based on data to be released over the coming weeks. I believe rates will still tick up slight to reverse the losses of today, but a drop on the near future can be expected once the artificial pressure on the Euro is lifted.

I will remind my regular readers that GBP/EUR rates of exchange can be pegged for up to a year to avoid losses on the exchange rates whilst you wait to complete your currency transfer. I can explain how this is done and I have never had a problem beating the rates of exchange offered elsewhere.

 

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