Will the GBP/EUR rate break out of its current trading range anytime soon? (Joseph Wright)

The Pound to Euro exchange rate is now trading towards the bottom end of its current trading range, as the pair have dropped down to the 1.11’s.

For some time now the pair have struggled to breach the 1.14 mark, and with there being talk of Theresa May’s (UK Prime Minister) position coming under pressure along with some disappointing inflation data yesterday, the Pound has been under pressure which has pushed it to the lower levels of the current range which I believe is roughly 1.10 to 1.14.

Now the likelihood of further rate hikes in line with the Bank of England’s plans are looking less likely, we’ve seen the Pound drop off and I think that the rate could continue to soften should this continue.

Those selling Euros into Pounds are still in a great position when we consider that the current EUR/GBP rate is trading towards the top end of a 10-year range, which mid-market levels now close to 0.90. This may continue mostly owing to GBP weakness, but I do think the Catalonian independence issue could scupper the Euros strong position should it resurface once again.

If you wish to kept updated regarding any short term price movements between the pair, do feel free to register your interest with me. Yesterday the Euro hit a 1-month high against the Pound so those that wished to be kept updated were able to take advantage of our service.

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.

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