Buying Euro rates rates already sliding ahead of budget (Joshua Privett)

A busy few days on the currency markets unfortunately all seem to point towards a difficult end to the week for the Pound. Buying Euro rates fell yesterday and are already on the verge of hitting 1.26 this morning on GBP/EUR.

Firstly, the budget today is only being discussed by the financial world by how negative the repercussions may be. Sources indicate £4bn in cuts are expected to help insulate the economy from a difficult 2016.

With the recent global slowdown, emanating most severely from China, the severity of the Government’s cuts will indicate how poor they expect their tax receipts to be this year. This is one of the reasons why the Pound has been falling against the Euro since late Monday night.

Furthermore, Thursday will bring the next Bank of England meeting to vote on how to address the current interest rate levels. It’s rare that such events and how they affect Sterling exchange rates become so predictable. But the past 5 months consecutively have seen this announcement to keep rates on hold cause an average Sterling drop against the Euro of just below 1.2 Cents. 

This drop was even more exaggerated last month when the vote split between the 9 members of the Monetary Policy Committee came out at 9-0 against raising rates, down from 8-1. This whitewash affirmed the likelihood that interest rates will not rise until 2017 at the earliest, and the attractiveness of Sterling on the currency markets plummeted, which caused the same effect on its value.

With no change in the contracting global market place, I fully expect the interest rate decision, alongside the press conference following this, to cause the same Sterling weakness that has become nearly routine since last year.

Those with Euros to buy may be wise to move sooner rather than later to avoid the expected falls following the release of the budget, the discussions on its impact, and the same timeline on Thursday.

I strongly recommend that anyone with a Euro buying requirement should contact me on 01494 787 478 and ask the reception team for Joshua in order to discuss a strategy for your transfer and maximize your Euro return in a falling market.

I have never had an issue beating the rates of exchange offered by the high street banks and other currency exchange brokerages. I also encourage Euro sellers to get in contact to discuss how best to safely ride the expected movements in their favour to their completion, in the time period you have to complete your transfer. [email protected]