Will GBPEUR exchange rates rise or fall by the end of the week?

With GBPEUR exchange reaches back above 1.14, it seems like a good time for euro buyer to take advantage as I expect the pound could come under pressure on Thursday when the Bank of England announce their latest interest rate decision.

The chances of a rate hike have dropped to 20% from 80% according to Lloyds and the reason for the fall is that UK economic data released last month disappointed. Retail sales, inflation and GDP all dropped significantly and recent Brexit developments are also putting pressure on the Bank of England’s decision.

Governor of the Bank of England Mark Carney has stated over the last 18 months that Brexit developments will influence monetary policy, and with the House of Lords on a weekly basis heavily criticizing the Government, UK Prime Minister Theresa May appears to be stuck between a rock and a hard place. It was only this afternoon the House of Lords stated the UK should remain part of the single market.

My personal opinion is that the Bank of England will keep interest rates on hold and the Governor Mark Carney will continue with his stance that a hike is likely to occur this year, however he will not confirm when and this will cause the pound to lose further value.

To finish the week all eyes will turn to the ECB and President Mario Draghi’s speech. Every time the President speaks, investors are watching closely for guidance in regards to the QE program. Time is running out for the President as he will want to give the markets as much time to adjust and the plan was to cut the QE program by the end of the year. This story has the potential to have a major influence of GBPEUR exchange rates moving forward.

For further information in regards to GBPEUR currency transfers 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 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible 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! **

 

 

 

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