Pound/Euro back in the €1.13’s
Those that need to buy Euros will be pleased as the GBP/EUR rate has recovered from yesterday’s lows of €1.1173. The jobs data I mentioned in yesterdays report was the catalyst for the Pound fighting back, rising back steadily throughout trading yesterday.
Today, it’s risen back towards the mid €1.13’s, coming back into the range it was stuck in for most of June. The reason that the Pound gained strength was speculation on interest rates; the same thing that caused it to drop earlier in the week. Today, one of the BoE members Ian McCafferty said that the BoE could consider ending it’s QE programme soon. He is one of the members that has been voting to raise interest rates. I think it’s about 50/50 whether the BoE will raise rates this year, and that’s why any tiny snippet of info is pulling the Pound up and down.
Those that need to buy Euros may wish to consider locking in a rate while things are looking better. It’s within 0.5% of the 1.14 mark, a resistance level it has not managed to break through for some time. If you need to buy or sell a large volume of Euros, get a free quote today.
Pound/Dollar approaching $1.30 again
The other reason was the fact that FED chair Janet Yellen was not as hawkish as expected in her statement to congress yesterday, which has weakened the US Dollar, making it cheaper to buy. If you need to buy or sell Dollars at the best exchange rate, click here for a free quote.
Pound/Canadian Dollar rates plummet
It’s a different story for GBP/CAD, as we have seen this pair drop from $1.6650 to $1.6450 over the last 24 hours. The reason is the fact that the Bank of Canada raised interest rates for the first time in about 7 years.
They pushed up the rate from 0.5% to 0.75%, which has strengthened the Canadian Dollar, made it more expensive to purchase, and pulled the exchange rate lower.
This is a good illustration of how interest rates affect the currency markets. If you need to buy or sell Canadian Dollars and are looking for the best rate, you can get a free quote here.