Sterling Euro exchange rates could be in for another difficult day ahead as the UK is set to shortly announce Public Sector Net Borrowing figures for August.
Following the Brexit vote and the UK’s decision to leave the European Union I expect the figures to be exceptionally high and this could cause potential losses for Sterling vs the single currency.
Pound Sterling Euro exchange rates hit their lowest level in 4 weeks yesterday and getting close to a 3 year low as confidence in the Pound continues to struggle.
The Bank of England’s Quarterly Bulletin is also announced at 12pm today and this is likely to focus on the economic issues caused by the Brexit vote. Therefore, any negative data released could see Sterling fall against the Euro.
However, arguably the biggest event of today and possibly the month will come from the US when the Federal Reserve releases its latest interest rate decision this evening.
There is a chance that the US may look at raising rates which will be the first time since last December and this caused huge movements for Sterling, Euro and the US Dollar.
The chance of the Fed changing monetary policy this evening is at just 15% but even with such a low figure there is still a chance so if any change does occur I expect to see a lot of volatility caused overnight.
If you want to avoid the uncertainty of tonight’s decision and need to buy or sell Euros then it may be worth organising this fairly soon in order to protect yourself against any potential negative movement.
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@example.com
I look forward to hearing from you. For a live exchange rate call me directly on 01494787478.