Super Thursday results in a stronger Pound, where to now for the GBP/EUR rate? (Joseph Wright)

The Pound was boosted across the board of major currency pairs yesterday afternoon after the Bank of England delivered a far more bullish statement than many had expected.

Although interest rates were held at 0.5% there was talk of the stronger than expected global economy likely to result in a more aggressive approach from the BoE as soon as this year.

Financial markets are now pricing an interest rate hike into the Pounds value and it’s predicted that this could happen as soon as May.

There have also been forecasts of a higher GBP/EUR rate this year with TD Securities predicting that the rate will hit 1.1627 in the first quarter of this year. The rate went over 1.14 yesterday afternoon although there has been a bout of profit taking since as the pair have since dropped below this mark.

In such a sensitive political environment the rates can move quite dramatically so if you’re planning on making a currency exchange involving the pair, it’s worth making me aware of your plans so that if the rate spikes, I can keep you updated.

Those hoping for a stronger Pound should be aware that if there has less bullish comments from the BoE regarding monetary policy, the Pound is likely to lose a lot of the gains from yesterday very quickly.

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