Sterling makes gains vs the Euro following ECB action (Tom Holian)
GBPEUR exchange rates have made gains following the action taken by the European Central Bank during yesterday’s trading session.
The central bank announced that they will be continuing their Quantitative Easing programme which was due to end in March 2017. The plan is now to reduce the monthly amount from €80bn per month to €60bn per month until December.
As the ECB have bought so many bonds already they now have to make purchases of negative ones which in effect means by performing QE this actually costs the central bank money to do it.
This has caused the Euro to dramatically fall vs the US Dollar and also against Sterling which is now back to levels seen early Monday morning following the news from the Italian referendum which saw GBPEUR rates hit their best level to buy Euros in 4 months.
Clearly the issues surrounding the triggering of Article 50 have not yet been resolved and the Supreme Court judgement is not due until January so I’m personally expecting the volatility to continue between Sterling and Euro but I do feel there is room for improvement for the Pound vs the single currency and I predict that we could see 1.20 hit before the end of this year.
Indeed, this morning UK Trade Balance figures came out better than expected which has seen the Pound improve overnight by 1 cent vs the Euro providing some good news for those looking to transfer money to Europe.
Having worked in the foreign exchange markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also help you with the timing of your transfer of money.
If you need to buy or sell Euros and would like a free quote then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org