When to buy Euros in 2016?

For my regular readers I hope you have had a fantastic Christmas and are now enjoying the run up until the New Year!

In previous articles I predicted GBPEUR would finish the year in the mid 1.30s and it appears this will occur. For clients that regularly buy Euros this is a disappointment as GBPEUR has reached the mid 1.40s throughout 2015 and some forecasters even predicted the rates could go higher (I wasn’t convinced).

Going into 2016 I expect GBPEUR will fluctuate in the mid 1.30s until the Bank of England meet for their next Interest Rate Decision on the 14th. As the US have finally raised Interest Rates this month I expect Mark Carney Governor of the Bank of England will continue to have a dovish tone and will be very fluffy to when the Bank of England will raise the base rate. In addition it was only last month Carney exclaimed the UK wouldn’t be raising interest rates until 2017.

Are the UK ready to raise Interest Rates?

Quite simply, No. Inflation is still at a worrying low of 0.1%, 1.9% below the targeted rate of 2.0% by the Bank of England. By raising Interest Rates it would entice people to stop spending and start saving. This is the opposite of what the Bank of England are trying to achieve.  Therefore I expect the data release mid-January could continue to weaken sterling vs Euro.

If you have an upcoming currency transfer at some point throughout 2016 now is the time to start your preparation. Firstly I would recommend emailing me with your individual requirement (buying a property/ company invoice etc) and timescales. I will personally respond to you with a forecast and the buying process. [email protected] Dayle Littlejohn.

IF YOU WOULD SIMPLY LIKE A COMPARISON AGAINST YOUR CURRENT PROVIDER FEEL FREE TO EMAIL ME WITH THE EXACT FIGURES!! THIS TAKES 30 SECONDS AND COULD SAVE YOU THOUSANDS!! 

For all of our readers, new and old, have a fantastic finish to 2015!!