Despite a slight recovery in GBP/EUR rates this week, the downward trend has continued today. Inflationary concerns are weighing on the Pound, and this morning figures showed that inflation was lower than had been expected. This has weakened the Pound as it means an interest rate hike is now firmly off the cards for the foreseeable future.
Also pushing the Pound lower are the ongoing negotiations in Brussels, where David Cameron is currently trying to garner support for his EU reforms. You can read about these events in more detail elsewhere such as the BBC website. For the currency markets, what it means is continued uncertainty. Talks are very fragile to say the least, and currently it still looks 50/50 as to whether the UK will vote to remain in the EU.
Markets hate uncertainty, and this is reflected in today’s fall for Sterling as you can see from the GBP/EUR chart below, showing the drop from €1.30 to €1.2835. I think the rate could continue falling for the rest of the week.
Protecting your currency requirement
Those that need to convert one currency to another in the coming months should take stock of their requirements now, and speak to an expert currency broker to gain an understanding of the options and contract types at your disposal. The next few months are likely to be incredibly choppy for the currency markets, and some banks are warning the Pound could fall by up to 20%.
We not only have incredibly competitive exchange rates on offer, we also have a wide range of contracts designed to protect clients and remove exposure to the currency markets and guard against the rate getting worse. I have also never had an issue beating rates offered by other currency brokers. If you would like a quote for your exchange, click below to complete an enquiry form now for free. I will then personally get int ouch to discuss your specific requirements, provide a quote, and run through the options you can consider to help you to achieve the best possible exchange rate.