Sterling Euro breaks 1.43 on the Mid-Market (Tom Holian)

Sterling Euro exchange rates have broken 1.43 this week and hit close to the best level to buy Euros for the second time this year and the highest since 2007 creating some excellent opportunities to buy Euros.

The Euro has massively weakened recently as rumours increase of two things including the strong possibility of further QE in the Eurozone as well as an interest rate hike in the US.

If QE takes place then in effect the ECB prints more money into circulation and the increase of supply of a currency typically weakens demand and will mean a fall in the value of the Euro.

In addition to the likelihood of this event taking place in December we could also see the US Federal Reserve look at raising interest rates in December.

Wednesday sees the release of US Jobless Claims and with the Fed having stated on numerous occasions already this year that a rate hike is data dependent then this could add more pressure and increased likelihood of a rate hike at next month’s US meeting.

My prediction for the week is Sterling strength vs the Euro.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

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