Sterling Euro Rates due to fall further (Tom Holian)

Sterling Euro exchange rates have fallen by over 8% since the start of December or the difference of £8,000 on a currency transfer of £100,000.

There have been big problems for the British economy over the last 6 weeks as fear loom of a Brexit and the Bank of England having stated that interest rates are unlikely to rise until 2017.

During 2015 Sterling was trading very high for a long period of time against the Euro which has clearly caused problems for British exports and the data being published recently backs up this opinion.

Industrial and manufacturing data has shown the lowest levels for 4 years which has caused Sterling to fall.

GDP has been revised down and with Chancellor George Osborne warning of a difficult year ahead and the UK economy facing a cocktail of risks things are not looking good for the UK and Sterling.

Oil prices have hit record lows recently and this has caused problems for the North Sea oil industry which is a big revenue stream for the British economy.

All these events have weighed heavily on Sterling exchange rates and on Friday we saw Sterling Euro rates drop by almost 3 cents during the trading session.

On Tuesday the Eurozone releases its own set of inflation data and this could cause further Euro strength if we see signs of inflation rising in the Eurozone as it will lend support to the ECB’s decision to extend QE back in December.

My prediction for the week is for Sterling Euro rates to drop into the 1.20 levels.

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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