Euro Rate Forecast – Best rates of Exchange for 2015 could be within the next week

The past few days have seen Sterling reach 3 1/2 year highs against the Euro! This is a result of markets pricing themselves ahead of the expected announcement of Quantitative Easing by the European Central Bank on January 22nd. However, we balance this with an internal look at Sterling. Yesterday it was announced that UK inflation had hit its lowest point since records began. Clearly our recovery seems to be built on weaker foundations than we first believed. As the Tories are currently running on how well the economy has been performing, poor data can cause an exaggerated effect on the market, as more fear a more contested Election in May.

As a result of this inflation data, it is likely that the Bank of England will announce a further delay of interest rate rises until 2016, when their minutes from the last meeting are released next week. This will likely weaken the Pound.

Conversely, since Eurozone inflation is set to be released in a few days, likely showing the single currency is STILL in deflation, we are definitely heading into a ‘sweet spot’ for purchasing Euros between now and next week.

If you would like to discuss your requirements for 2015 and how these tempting rates can be taken advantage of even for requirements later on in the year, email me at [email protected] and I would happy to give you a more thorough overview of the markets and help you make some profitable plans.