Will Sterling fall further against the Euro? (Tom Holian)

Pound Sterling saw a dramatic fall against the Euro following the Bank of England’s decision on Thursday to cut interest rates to an historic low from 0.5% to 0.25%.

Although this was expected the central bank also decided to increase Quantitative Easing by another £60bn taking the total of QE now to £435bn.

Confidence in the British economy has really fallen since the announcement of the Brexit and this has largely impacted economic data.

UK PMI data for both construction and services came out much lower than expected and consumer confidence levels are now their lowest since 1990.

Clearly there was a huge lack of investment in the run up to the Brexit vote and the uncertainty is the reason why the economy has come under pressure.

The main announcements for economic data covering the impact of the Brexit will come out over the next fortnight and this is likely to show further negative news and this could cause Sterling to fall even further against the Euro.

There is a real chance of further interest rate cuts to come according to deputy governor of the Bank of England Ben Broadbent and this is also likely to cause further pressure on the value of Sterling exchange rates.

If you need to buy Euros over the next few weeks for  foreign property purchase it may be worth buying a forward contract which allows you to fix an exchange rate for the future for a small deposit.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]

I look forward to hearing from you.