Sterling Euro exchange rates have continued to feel the pressure ending the week negatively.
Even positive UK GDP figures for the third quarter did little to help Sterling vs the Euro which highlights the problems that the Pound is facing owing to the impact caused by the Brexit vote back in June and the recent announcement that Article 50 will be triggered in March 2017.
German inflation data yesterday was slightly higher than expected which gave the Euro further strength as it could justify the ECB’s recent QE programme and provides evidence that it’s working.
Next week the we have a number of important data releases beginning on Monday when the Eurozone announces GDP data for the third quarter. Any signs of positive growth could see further Euro strength against the Pound.
Arguably the biggest day of the week for anyone with a GBPEUR requirement will come on Thursday when the Bank of England meets to discuss their latest monetary policy.
I think we could see a small chance of an interest rate cut for the UK as Bank of England governor Mark Carney has said that the recent cut was needed to stabilise the economy so another one next week is in my mind not out of the question.
If there is no rate cut I think Carney could cause the Pound to fall further against the Euro if he says that another one is not out of the question.
If you’re in the process of buying a property in Europe and worried about what may happen to GBPEUR rates before the end of the year it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.
Having worked in the foreign exchange industry for 13 years I’m confident that I can offer you better exchange rates than using your own bank and also help you with the timing of your transfer.
If you have a currency transfer to make and would like further information then feel free to contact me directly and I look forward to hearing from you.
Tom Holian email@example.com
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