Tag Archives: sterling strength

Will GBPEUR rise or fall on the French elections?

The general impression is that  GBPEUR will rise since the French election offers lots of potential for Euro weakness in the coming months. The overall impression on financial markets is that a Le Pen or Melenchon victory would severely weaken the Euro, with a real chance at least one of these candidates will make it through to the second round after Sunday’s first round vote the single currency could be in for a tough couple of weeks. What happens is very much open to interpretation, nothing should be taken for granted in such uncertain times, however.

The overriding expectation is that the French election will ultimately be won by the more centrist ‘reformer’ Macron. Performing well in the polls the market is expecting he will beat Le Pen in the run-off on the 7th May. If you have a Euro buying requirement the rates on Monday morning could be much improved as the market debates the likelihood of a Le Pen victory.

The pound has been much stronger on the back of the General Election announcement earlier this week for the UK. Most reports have the pound much stronger in the next few weeks as Theresa May cements her position and is able to drive through more reform. A flipside view is that with her relying less on the elements in the Tory party who seek a harder Brexit, she will be forced to create more of a softer Brexit. This is one of the reasons for the pound rising but such elements and expectations can quickly change.

If you are buying or selling the pound and euro in the coming days and weeks the importance of the French election and the continued Brexit fallout shouldn’t be underestimated. With only a few days between the two rounds of the French election Euro buyers might find they are presented with a fresh unique opportunity to buy Euros, the best in 2017 so far.

If you would like some assistance with the timing and planning of any currency transfers please contact the author Jonathan Watson directly by emailing jmw@currencies.co.uk

Will GBPEUR continue to fall? (Dayle Littlejohn)

It’s been a terrible month for Euro buyers and I am far from surprised. GBPEUR exchange rates have dropped over 4% since the start of the month and therefore central levels have breached 1.14s. To put this into monetary terms a €200,000 purchase is now £7,500 more expensive.

If you are a regular reader for weeks I have been stating that March would be a tough month for the pound as UK Prime Minister is set to trigger Article50 at some point. It was reported towards the end of last week that MPs within the House of Commons will debate the House of Lords amendments and Theresa May could trigger Article50 as early as next Tuesday.

For euro buyers I expect rates of exchange to continue to slide this week therefore if you are needing to purchase I would recommend sending my your requirements today and I will give you a call first thing Monday morning to disucss your transfer drl@currencies.co.uk.

In other news the Bank of England are set to release their latest interest rate decision Thursday afternoon. No surprises are expected therefore rates should remain unchanged. However as always when Governor Mark Carney addresses the public expect volatility as he will discuss how Brexit is impacting the Bank of England’s monetary policy.

For euro seller we are closing in to the fantastic rates of exchange that we saw last October and when Theresa May triggers Article50 it is very difficult to predict how the pound will perform in the upcoming months therefore I would take advantage of the gains you would have made this month.

If you reading this website for the first time as you need to convert GBPEUR, feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 Monday morning and ask to be put through to Dayle Littlejohn.

If you are already using a brokerage and would like to a free quote email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands.

Pound to Euro rate trades at a 7 week low, will today’s Spring Budget offer the Pound a boost? (Joseph Wright)

The Pound has lost value over the past few weeks, not just against the Euro but across the board of major currencies.

The reason behind the fall can be put down to the uncertainty as to when the UK will begin the Brexit process, and the situation is being made worse as the House of Lords continue to discuss the proposed bill and attempt to make amendments which is negatively impacting the Pound.

Today could be a busy day for GBP exchange rates as Philip Hammond will be going over the Spring Budget. No major changes are expected to the governments current spending plans but I do think a bullish outlook from the UK chancellor will offer the Pound some much needed support. GBP/EUR has lost almost 4 cents in value over the past few weeks after hitting its 2017 high off the back of Euro weakness.

The movements between the GBP/EUR pair in recent weeks may offer an insight into what we can expect between the pair throughout the year. With the Brexit likely to begin this month and a number of key political elections in the Eurozone this year, I think there could be a number of big moves between the pair throughout the year so do feel free to get in touch if you wish to be kept updated.

If you are planning to make a currency exchange involving the Pound and the Euro, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Will the Pound to Euro exchange rate struggle to break through 1.18? (Joseph Wright)

It’s been an interesting 24 hours for the GBP/EUR exchange rate after some key economic data releases out of both the UK and the Eurozone.

The Pound to Euro exchange rate did break through 1.18 yesterday morning as investors hoped for a high inflation reading out of the UK for the month of January, but as the figure released came out below analysts expectations the Pound was sold off and almost fell below 1.17 at the inter-bank level.

The reason for the fall is there is less likely to be an interest rate hike from the Bank of England whilst inflation readings aren’t surpassing market expectations.

Now that foreign exchange markets appear to have accepted that the UK will go ahead with a ‘Hard Brexit’ and that it’s likely to begin next month, economic data is beginning to have more of an impact on Sterling’s value whereas prior to the UK PM, Theresa May outlining the governments plans it was mostly sentiment that drove the Pounds value.

Interestingly the Pound has since recovered from yesterday’s fall and the GBP/EUR pair is currently trading around the 1.18 mark once again. It will be interesting to see whether this level will act as a resistance, and I think any readers with an upcoming currency requirement involving the converting of Pounds into Euros may wish to consider the current levels as we could see a fall in the Pounds value as the Brexit begins.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

What trading rates can I expect on GBPEUR in 2017?

I would expect that the GBPEUR levels on offer for GBPEUR in the coming weeks and months will remain within the ranges we have seen since the Referendum. These are 1.2013 to 1.1068 on the interbank exchange rate. Simply knowing the ranges is helpful but what is more useful is the upcoming events that can move the rates and understanding in advance your options to help you navigate the markets. Understanding the FX markets is some respects simple, in others impossible to make sense of.

We could easily be looking at a quick change on GBPEUR at any point in the next week or so as the Supreme Court decision is released. We are looking to this result as the main driver on GBPEUR in the short term. If you have a transfer to consider you should be closely monitoring this decision or if you wish you can alert me to your position and I can monitor it for you. Just email jmw@currencies.co.uk to highlight your situation Other flashpoints include the inauguration of Donald Trump on the 20th December. Will we finally see this as the end of the Trump rally that has been taking place in recent weeks?

Looking further into 2017 we have also the Dutch and French elections. If you have a transfer to consider in the future then making sure you are aware of such issues and their potential to impact your exchange rate is sensible. Personally I feel the pound is undervalued at present. There is real potential for some upside in the coming weeks and months once we get some clarity on the Brexit plans. Ultimately this could take a few months to manifest so clients looking to move now or in the next 6 weeks might wish to take advantage of any short term spikes as the pound is likely to remain under pressure.

For more information on events that will shape your exchange rate please speak to me Jonathan by emailing jmw@currencies.co.uk. I am your personal account manager here and will be very happy to hear from you and offer some assistance.

Thank you for reading, I look forward to answering your questions.

What next for GBPEUR exchange rates?

The outlook on GBPEUR is as complicated as ever with no real progress on Brexit and no sign of a quick resolution. Political uncertainty is a huge driver on exchange rates, the current market is very much geared towards uncertainty with sterling showing little signs of improving. This week there are some data releases which could move the market, Notably today was a speech by Mario Draghi where he talked about the UK’s access to the single market, essentially he reiterated the fact the UK had to respect all four freedoms, that is the free movement of capital, services, goods and labour. That means there can be no special deal for the UK that would see it secure access to the single market whilst allowing controls on immigration.

This point plus the noise from Boris Johnson that perhaps the UK would invoke Article 50 early in the New Year has all pointed to a strong likelihood that the UK will be forced into a ‘hard Brexit’. This means there would be a quick break and the UK would literally go it alone into the world and trade. There is much pressure on the Prime Minister Theresa May to do something from the more Brexit minded politicians. Expectations and pressure is mounting, the lack of action and lack of clarity over what is happening will not last forever!

If you have a transfer GBPEUR is at a critical juncture. Now is not a time to be complacent, some of the major banks predict GBPEUR could fall to 1.08, earlier in the year HSBC was predicting parity! If you need a transfer please email me Jonathan Watson on jmw@currencies.co.uk

GBP/EUR dropped 1% vs the Euro during today’s trading session, downtrend likely to continue (Joseph Wright)

It’s hard to remain optimistic regarding Sterling’s value moving forward at the moment, as despite a couple of days with positive economic news releases for the UK economy, the Pound is still on the decline.

Yesterday GDP figures were released for the second quarter of this year, and the figure actually came out above analysts expectations at 0.6% growth, although currency markets remained relatively unchanged.

Then earlier today Nationwide released UK House Price figures which demonstrated growth in the UK property market. According to their figures house prices grew 0.5% month-on-month in July and this figure topped analysts expectations.

With both figures coming out better than expected yet the Pound remaining in negative territory, I see this as a sign that the Pound will be under pressure as time progresses, particularly when figures are released highlighting a drop in economic activity since the ‘Brexit’.

The average inter-bank rate between GBP/EUR is around the 1.25 mark so at current levels we’re not miles from that benchmark, but many analysts prior to the ‘Brexit’ were predicting potential parity between Sterling and the Euro so it could be that we have further to drop over time, and I wouldn’t rule that trading level out entirely particularly if economic data out of the UK begins to show a steep decline in economic output since the ‘Brexit’.

If you are planning a currency conversion involving GBP and the EUR, it’s worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

GBP/EUR Rates Surge Following Theresa May Appointment (Matthew Vassallo)

GBP/EUR rates have surged over the past 24 hours, with the biggest single gains seen since the result of the EU referendum was announced. The Pound rose by over two cents against the single currency, hitting 1.1981 at today’s high. Sterling is benefitting from some political stability, following Theresa May’s appointment as the new Tory leader & Prime Minister, effective from tomorrow.

One of the key catalysts for Sterling’s woes over the past few weeks has been the political uncertainty created by David Cameron’s immediate resignation, following the Brexit decision. This uncertainty was anticipated to last until MP’s decided on their leader later this year but following Angela Leadsom decision to step down as one of the two remaining candidates, May’s run to number 10 has been cleared.

This has brought some much needed stability to the markets and investors risk appetite has increased, leading to Sterling’s run. Whilst we may now see Sterling continue its run over the next 48 hours, Thursday’s Bank of England (BoE) interest rate decision could bring any positive spike to a swift halt. With an expectation that BoE governor Mark Carney will announce a rate cut to 0.25% either Thursday or next month, or at the very least increase our current Quantitative Easing (QE) programme, the Pound’s recent gains could be short-lived.

If you have an upcoming GBP or EUR currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current supplier, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

Where next for GBPEUR?

I think the pound is likely to come under further pressure in the next few weeks as the Brexit debate intensifies further. Trying to make sense of the present negotiations is no easy task since there are so many difficult problems to come to terms with. Will the UK even leave? This seems likely but the interests of Scotland need to be addressed as does the tricky issue of what the UK deal with the EU will mirror. Already the EU have said there will be no deal with access to the Single Market and free movement of people. This would only pave the way for further EU countries seeking to renegotiate their position and possibly increase the likelihood of a EU break up.

The will of the people has spoken and it will be the new Government’s responsibility to implement the plan. Looking at the forecast over the next few days and weeks I would expect the pound to lose further ground reacting to the headlines as we learn of news. If you have any transfers to consider involving buying or selling the pound and Euro then making some plans in advance is a wise move. The next few weeks and months are really uncharted territory and having a plan in advance is a wise move.

For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk

What next for GBPEUR Rates?

Whilst attention is squarely on the UK’s EU Referendum on the 23rd June and the expected GBP weakness at this time markets must also take note of events in the Eurozone. The European Central Bank meet tomorrow to discuss their latest Interest Rate decision and most reports are warning of the likelihood we might see some Euro weakness as it becomes apparent that the European Central Bank (ECB) must look to further stimulus to kick start the flagging Eurozone economy. Look for hints tomorrow afternoon as investors eye up the possibility of the Euro weakening in the future and consequently sell off positions.

Friday is US Non-Farm Payroll data which will likely impact USD exchange rates and this will also weigh on the pound and the Euro having an effect on GBPEUR rates too. If you need to buy or sell pounds and Euros making some plans around these two important events is a sensible move to try and avoid the uncertainty of the next few weeks. 3 weeks today we will know the outcome from the Referendum, some predictions on GBPEUR Range from 1.18 up to about 1.40! Making plans around this important event is in my opinion a very sensible move.

For more information please email me Jonathan on jmw@currencies.co.uk

EUR Loses Boost Sterling’s Value (Matthew Vassallo)

The EUR has taken a hit during Tuesday morning’s trading, following negative comments from ECB governing council member and head of Germany’s Bundes Bank Jens Weidman. He was extremely critical of the current monetary policy of the ECB and this seemed to knock investors’ confidence in the single currency. This in turn helped to drive Sterling’s value up but it was due to a lack of confidence in the EUR, rather than any real belief that GBP has turned a corner. There is also on-going concerns that Greece will soon be back in the spotlight, with figures showing that the Greek economy has contracted by 0.4%. There is very little room for manoeuvre when it comes Greece renegotiating its current deal with the IMF and any further setbacks could mean Greece will finally default and potentially have to leave the EU.

This has shifted market perception slightly and it is interesting to note that these gains for the Pound came about despite some worse than expected UK inflation figures this morning. The EUR has found some support over the last hour and despite these latest developments, I’m still not convinced this support for Sterling is sustainable. The upcoming EU referendum continues to dominate headlines and the uncertainty it is creating will continue to be a shackle around any Sterling improvement.

If you have an upcoming GBP currency requirement and would like to discuss the best options for your exchange, then please feel free to call me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

GBPEUR showing signs of weakness once again? (Joseph Wright)

After disappointing yesterday the GBPEUR currency pair have once again begun the day poorly, with the pair down over 0.5% at the time of writing.

The Pound dropped yesterday against most major currency pairs after both Industrial and Manufacturing data came out worse than expected, with factory output falling to its lowest level in 3 years.

These disappointing sets of data don’t bode well for Sterling moving forward when we consider that the EU Referendum is now just 42 days away. Political uncertainty usually weighs down the value of the underlying currency, and with the most recent polls suggesting that the ‘Leave’ campaign is gathering up steam since the beginning of May, I’m expecting further weakness in the value of Sterling in the lead up to the Referendum.

There was further negative news for Sterling bulls yesterday as the NIESR (National Institute of Economic and Social Research) suggested that GBP could fall a further 20% in the event of a ‘Brexit’, and also it was announced that as of late, the campaigns for Britain to leave the EU have received more financial donations than their opponents.

Later today at 12 GBP exchange rates could swing in either direction as we have a number of important news releases scheduled. The latest Bank of England Interest Rate Decision, Monetary Policy Statement and Minutes Speech are all due around that time so anyone with an interest in the rate of GBP exchange rates should keep a close eye to the markets around that time.

If you are planning to use GBP to buy a foreign currency it may well be worth your time getting in contact with me (Joseph Wright) on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Sterling Rallies Against the EUR (Matthew Vassallo)

Any clients holding GBP should be keeping an extremely close eye on market developments, as the Pound has started to find some support over the past couple of days. This move has brought some much needed respite following a poor run for the Pound, which started at the turn of the year and has been compounded by the on-going uncertainty surrounding the EU referendum in June and a possible Brexit.

The reason we have seen the EUR weaken off against Sterling is likely due to the comments made by President Barack Obama over the weekend, which indicated Britain would be in a far worse position if we left the EU and ‘at the back of the line’ in terms of trade deals with the US. This immediately caused the EUR to weaken, as the comments are likely to sway a portion of voters, perhaps some of those who were still undecided.

This drop was intensified following yesterday’s better than expected UK GDP figures and GBP/EUR rates moved through 1.29, providing some much needed respite for the Pound. However, this spike was not sustainable and the EUR found support moving the pair back towards 1.2850. I still feel the Pound is likely to find like tough going over the coming weeks and I do not expect a move above 1.30 under current market conditions.

If I was holding GBP I would be looking to take advantage of the improvement we’ve seen this week and not gamble on what is still a fragile economy.

If you have an upcoming GBP currency requirement, then please feel free to contact me to discuss the current market conditions and forecasts. We assist clients with not only the transfer of their funds at award winning rates of exchange but we will also help you time your exchange and maximise the market value. I can be reached on 0044 1494 787 478 and just ask one of my team for Matt. Alternatively, you can email me directly on mtv@currencies.co.uk

Sterling expected to rise against the Euro next week (Tom Holian)

Sterling Euro exchange rates ended the week on a high after hitting their lowest level to buy Euros since November 2014 following the release of the Budget Statement.

On Thursday however all the losses were reversed when the Bank of England surprisingly announced that rather than cutting interest rates in the future the next move would more than likely to for a rate hike.

With the US Federal Reserve keeping interest rates on hold on Wednesday evening and the ECB cutting rates to 0% last week global investors have relished this news and one of the reasons for such Sterling strength against both the Dollar and Euro during the end of the week.

UK inflation data is published on Tuesday morning and if better than the 0.3% expected this could see further Sterling strength against the single currency as it would provide further support that the Bank of England could be right in that interest rates could be increased.

The main reason for the ECB cutting interest rates and launching further Quantitative Easing this month is in an attempt to combat falling inflation as this also hampers growth.

On Thursday the UK releases Retail Sales data and I think this could be better than expected and I think we could get close to reaching the 1.30 levels again towards the end of the week.

Good news if you’re buying Euros.

However, over the next three months the issue and uncertainty of a possible Brexit is likely to weigh heavily on Sterling Euro exchange rates so although I think we could see some gains in the short term we could see Sterling struggle in the months ahead.

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

 

 

GBPEUR could be very volatile this week and next!

The EU summit is looming and is likely to lead to plenty of movement on exchange rates as investors  digest the latest news and plans for the pound and the Euro. Just lately there have been a number of expectations on the pound to weaken but owning to some comments by the ECB members responsible for voting on QE next month, the Euro has strengthened. We are now at a very important point which will determine the next few weeks on GBPEUR exchange rates. Has David Cameron managed to renegotiate a new deal with key players in the EU? My reckoning is yes he will but with concessions. I think the pound could lose up to 2 cents if this is the case. I would not be surprised to see this story drag on until March at the next EU Summit as is often the case in these meetings, things don’t get agreed first time around.

For more information on the pound and the Euro please speak to me Jonathan by emailing jmw@currencies.co.uk. I have many years experience in assisting private clients and business in their currency transactions. I am here to offer a specialist service for anyone who needs to consider any money transfers for the future, please do contact me to learn more.

GBPEUR struggling in the current market!

The Pound to Euro rate is once more struggling leading to great uncertainty for Euro buyers in particular. Euro sellers for pounds are enjoying some of the best levels in over one year whilst Euro buyers are being subject to misery and worry. If you need to buy or sell Euros then making plans in the current market is I believe a very sensible move to try and limit yourself from volatility that might present itself as a result of the UK Brexit votes and also the worries with the UK Economy. If you need to buy or sell Euros then we offer a number of options and plans to help remove the risk from the market and offer a specific price. Market fluctuations are more of a concern at present because there is so little known at present about the Brexit and what lies around the corner.

The pound is now at some of the lowest levels against the Euro in 1 year which is presenting an excellent deal for Euro sellers which might not last. If yo need to sell Euros making some plans soon is I believe sensible since there is a chance of the Euro weakening in the future when the ECB talkes about QE next month. For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk

Sterling Fighting Back! (Matthew Vassallo)

The Pound has started to recover against the EUR during Monday’s trading, following a tough couple of weeks. Today’s move has seen GBP/EUR levels spike back to 1.3435 at the high, before dropping back below the 1.34 threshold by close of European trading. This move will bring some relief to those clients holding GBP, after watching the Pound’s value deteriorate at an alarming rate recently.

Today’s move came about due to poor Eurozone Investor Confidence figures, which came out under expectation and immediately caused the EUR to weaken. Whilst I do not feel this move signals the start of a full recovery it is likely Sterling will now start to find support around the current levels, ahead of a busy week of economic data releases.

Looking ahead and we have a host of key data releases this week, which are likely to cause additional movement on GBP/EUR exchange rates. Tomorrow we have UK Industrial & Manufacturing Production figures, along with the latest Gross Domestic Product (GDP) estimate by the NIESR. This release is considered extremely reliably by investors and will give us a key insight into UK economic growth during the last 3 months. On Wednesday we have Eurozone Industrial Production, which is meant to show a drop on previous, along with BoE governor Mark Carney’s latest speech. However, it is Thursday which is likely to dominate headlines, along with the latest BoE interest rate decision and monetary policy statement. Whilst it is widely anticipated that rates will be kept on hold at 0.5%, it is the subsequent statement that will be most interesting to clients. Any indication of future monetary policy stance, or a prospective interest rate hike is likely to cause further volatility for the Pound.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Will GBPEUR go back to 1.40?

With economic data pointing to improvements in the Eurozone economy and sterling on a major slide it is looking very difficult we will see an improvement back towards the levels that led to us achieving the 1.40 mark. Expectations on what to expect hinge on the Eurozone economy giving up some of the recent ground in terms of an improving Unemployment picture plus us expecting to see a revisiting of the QE decision. At the beginning of the week some analysts were debating whether or not the Eurozone would need to look at further founds of QE, this scenario has been removed for the time being but could easily rear its ugly head causing the Euro to weaken.

The pound is struggling because the UK economy is struggling and there is the Referendum on the UK’s membership of the European Union looming. The stock market wobbles in China are also causing panic with China a very big investor in the UK, the worries in China have caused uncertainty for sterling. As well as troubling UK inward investment, the chance of any interest rate hike in the UK have been pushed further back too.

If you are looking to move in either direction on GBPEUR (eg buy euros or sell euros with pounds) and wish for a better exchange rate and to get more information on what is happening and what might happen in the future please speak to me Jonathan on jmw@currencies.co.uk

What next for the Euro?

The Pound to Euro exchange rate is likely to come under some real pressure in the future as Inflation becomes a problem yet again. Today markets are celebrating the UK has come out of its deflationary phase. Yet the falling Oil prices suggest to me that the problems for sterling are far from over. Inflation is very likely to drop in the future which will push back further any interest rate hike expectations leveled at the pound and the UK. For this reason I believe that if you need to buy or sell the pound or Euro your transfer time is critical and making careful plans is very sensible. Understanding the markets and all of your options in advance will be key to achieving the most for your money. The gamble is to do nothing!

For a full overview of your position and for assistance in achieving the very most for your money please contact me Jonathan using jmw@currencies.co.uk

GBP/EUR Rates Hit 1.38 Ahead of BoE Interest Rate Decision (Matthew Vassallo)

GBP/EUR rates have remained fairly flat during Wednesday’s trading, with little data of note for either the UK or the Eurozone. The Pound has hit 1.3850 at today’s high but dropped back towards 1.38 by close of European trading. GBP/EUR rates have remained as volatile as ever over the past couple of weeks, with both the Pound and the EUR threating to make sustained inroads, only to see their gains eliminated almost as quickly as they came about.

What we do know is that the EUR has found support around 1.40 and with some poor UK data recently, in particular the latest Manufacturing figures, this trend could continue. Similarly the EUR did fight its way back under 1.35 for a short-time but with market confidence in the Eurozone remaining fickle it didn’t take long for Sterling to recover back to the current levels.

All eyes will turn to tomorrow with a host of key UK economic data releases. We have the latest Bank of England (BoE) interest rate decision and monetary policy statements, along with the central banks latest minutes. This data set will give us a key insight into their thinking and is likely to be used as a barometer by the markets, in terms of where the markets will move next.

Personally I am off the opinion that despite the recent dip GBP remains at a very attractive level. I’m convinced that as we move into 2016, the current Quantitative Easing (QE) measures in the Eurozone will start to show positive results and unless we see another catastrophic scenario arise like in Greece this year, then the EUR is likely to find some much needed support, which would be far more sustainable than it is now.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on mtv@currencies.co.uk