Pound to Euro rate hits May high this morning, will Euro weakness continue to push the rate higher?

The Pound to Euro exchange rate has hit a month high this morning, after breaking through 1.14 quite comfortably earlier today for the first time in May.

At the time of writing the pair are trading at 1.1425, offering those exchanging Pounds into Euros the chance to make their trade at the best levels in a few weeks. The move this morning looks like its off the back Euro weakness, with the EUR/USD rate hitting a fresh 2018 low over the past day.

The Euro is the worst performing major currency of the past week, and talk of stubborn inflationary levels stopping the ECB from amending the current monetary policy are beginning to dampen sentiments surrounding the Euro also. The European Central Bank has confirmed that there will be no interest rate hikes this year which is also dampened sentiment towards the Euro, so I can understand why the single currency is dropping especially when we consider how strong it’s been over the last year.

There are a few downsides for the Pound that I think Sterling sellers should be aware of. With Brexit talks stalling in the House of Lords and the Northern Irish border also becoming a hot topic, I think there is a chance the Pound could see a sell-off should there be a negative Brexit related update, and the UK economy has also been showing signs of a slowdown to Sterling sellers should be weary.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

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