Will the pound rise further against the Euro this week?

GBPEUR rates have really improved as the likelihood of a US interest rate increases and the prospect of further QE increases too. Will this situation just keep on going? Well it would not be surprising if we actually saw the rates snap back in the future since nothing should ever be taken for granted on exchange rates. Much of the movement has been in relation to news from overseas that threatens to lead to Euro weakness but there are no guarantees these events will occur and henceforth I think if you need to buy euros moving sooner rather than later is the best course of action to avoid disappointment.

Let us views exchange rate movements for the last 8 years on GBPEUR and we find that we have just come to a point where the forecast is now for further improvements in the levels on offer, the recent trends had all been fairly poor for Euro buyers, this has clearly changed this year however. In short if you are buying Euros you are doing so at an 8 year high! This is bad news for Euro sellers who I think should think twice about stalling their decision to buy or sell, just waiting and hoping for rates to improve is a very dangerous strategy!

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

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