GBPEUR plummets due to Mark Carney

Late last night Governor of the Bank of England Mark Carney told the BBC that an interest rate hike would occur this year but failed to announce that it would happen at the May meeting. He did state Brexit negotiations and the performance of the UK economy will dictate when the hike occurs. This was seen as extremely dovish by investors and the pound was sold off.

The Governor also spoke about inflation and said as always inflation needs to be monitored closely. With inflation falling quicker than expected this month to 2.5%, if this trends continues I expect to only see one hike this year, which arguably is a bad situation for clients buying euros.

The pound had been making considerable gains against the euro over the last 6 weeks due to the hype of an interest rate hike and the shift in Brexit sentiment. However not that a hike may not occur, this could be the start of the slide for sterling against the pound. Furthermore with trade negotiations set to start in the upcoming months now is the time to buy pounds in my opinion.

For further information in regards to GBPEUR currency transfers 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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