UK Inflation and the impact for Pound Euro exchange rates (Tom Holian)

Pound vs Euro exchange rates have had a very interesting period recently hitting the best rates to sell Euros to buy Sterling in 8 months before recovering to a 5 week high to buy Euros with Pounds.

The Bank of England have been rather indecisive in their recent commentary since the 5-3 split in favour of keeping interest rates on hold and there is still no sign as to when interest rates in the UK may rise. This has led the Pound to struggle vs the single currency to make any real gains during the last fortnight since the vote.

The topic of Brexit continues to dominate the headlines and we are still no closer to finding out whether the UK will be facing a hard or a soft Brexit. Personally I think in the longer term the UK will opt for a softer Brexit but this is a long way from happening at the moment.

Today could be a very big day for Sterling vs the Euro as UK inflation is due out in the next hour. Inflation has been a very hot topic over the last few months as it has been rising higher than the target set by the Bank of England.

Current levels are 2.9% compared to the target of 2% and this is a real concern for the economy. UK Average Earnings are at 2% and at the moment the cost of living is rising and the Bank of England are in a tricky situation. Depending how the figures come out this morning this could have a big impact for GBPEUR rates today.

If you have a currency transfer to make and would like to save money when transferring Euros then contact me directly for a free quote. If you’re transferring over £10,000 a quick email could save you money compared to using your own bank so feel free to get in touch with a brief description of your particular requirement.

Tom Holian [email protected]