Sterling Euro drops below 1.30 as predicted (Tom Holian)

Sterling has dropped vs the Euro below 1.30 during today’s trading session as predicted in many of my recent articles across the various websites that I write on.

Although UK inflation rose this morning and came out better than expected this saw a brief recovery for Sterling but as soon as Bank of England Mark Carney began to speak at lunchtime we saw Sterling plummet vs the Euro.

The main reason is that he has again said the UK is not ready to raise interest rates which has caused confidence to drop for Sterling exchange rates not only vs the Euro but also vs the US Dollar.

Volatility in China which published the worst GDP for 25 years this morning and with oil prices continuing to drop now is not the right time to look at raising interest rates.

This has created the best opportunity to sell Euros for over a year and the lowest level to buy US Dollars with Sterling for 6 years!

Carney went on to say that the UK faces risks ahead and that inflation is under more pressure here than in the US and that the British economy is more exposed to problems with global growth.

With Sterling Euro rates expected to keep falling during the week then if you need to buy Euros soon it may be worth looking at buying a forward contract which allows you to fix an exchange rates for the future for a small deposit.

To find out more or if you have a currency transfer to make and want to save money on exchange rates compared to using your now bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

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