As I predicted in my last post, the European Central Bank have just announced further stimulus in the form of a cut to the benchmark interest rate to 0%, and have also expanded their Quantitative Easing programme. I said there may be a temporary spike in GBP/EUR rates as a result, and this is how the chart looks at the time of writing:
As you can see there has been a significant weakening of the Euro, pushing the rate above the key €1.30 mark to level at €1.3050. At 13:30pm today the ECB president Mario Draghi will give a press conference, and his comments in this may cause further volatility in the rate.
Personally I don’t think these gains will hold. The initial market reaction will probably correct itself pretty quickly and I would not be surprised to see the rate back below the €1.30 mark by the end of the week, if not the end of the day.
What this does present however is an opportunity to buy Euros at the best rates we’ve seen in over a month. If you need to buy Euros at the best possible exchange rates and would like a quote, then click below to send me a free no obligation enquiry.