Tuesday 13th October 2015
Volatility has returned to the markets, and since my last post on Friday we have seen the Pound/Euro rate drop a further 2 cents, dipping into the €1.33’s this morning, and is currently settled at around €1.34 as you can see from the chart below:
Poor UK Inflation figures weaken Sterling
The reason for the drop of over 1 cent this morning was due to poor UK inflation figures. This morning the Consumer Price Index (CPI) fell into negative territory at -0.1%. This is worse than expected, and pours cold water on any hope the Bank of England will be raising interest rates. As the pressure is off the BoE, investors are not going to be buying Sterling in a hurry, and as such the Pound has weakened. The effect on the exchange rate is that levels have dropped off across the board.
Do you have Euros to convert to Pounds?
While the market movements today are bad news for those buying a foreign currency with Sterling, those that have Euros to convert back to Pounds will be rejoicing! The current EUR/GBP rate is the best it’s been since January. If you will have Euros or indeed any other currency to convert to Sterling, then it’s worth serious consideration to locking a rate in now. Even if you don’t have your funds available now, you can still use my services to guarantee today’s rate for up to 2 years in to the future, using a ‘Forward contract’. (Click here to send me an enquiry to find out more).
Need the best exchange rates?
If you would like to discuss the currency markets to help you decide when to fix an exchange rate, or would like to get a quote for your currency exchange to compare with your bank or existing broker, then click here to send me a free enquiry today.
I will get in touch with you personally, and often better rates available at banks or other currency brokers by as much as 3%, so it’s certainly worth getting in touch to see what I can do for you.