What can we expect next on GBPEUR?

GBPEUR has risen as the pound strengthens on the back of increased expectation that the Bank of England will soon raise interest rates in the UK Investors are betting that this will happen and this will see the pound stronger in the future. If you have a future requirement to buy or sell Euros against pounds the coming weeks will be crucial to how the future direction on rates shape up.

As mentioned the Bank of England is talking about raising interest rates which could happen as early as 2nd November. If this is the case then the pound should rise since there is growing speculation that this will be the case. Ultimately I feel the expectation is too high and the Bank of England will be very cautious, the propensity for a volatile pound is high.

The Euro is looking very strong but it is weaker from the recent highs owing to the news regarding the German election. Angela Merkel’s diminished position has seen the Euro weaker, there is also key economic news to be concerned with too. So for example the latest ECB decision where we might learn of any tapering of their QE program could see a volatile period on the Euro.

Ultimately I expect the Euro to remain stronger against the pound since it is highly likely the uncertainty over Brexit will continue to be a weight around the neck of the pound. Therefore if buying Euros with pound moving sooner on any uncertainty is the best way forward to avoid the risk of losses.

Thank you for reading and for any further information regarding the best rates of exchange buying and selling Euros please do contact me by emailing jmw@currencies.co.uk

Thank you for reading and I look forward to hearing from you.

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