Pound/Euro rates have fallen further this morning after UK markets opened after the extended Bank Holiday weekend. Markets were reacting to the speech the ECB president Mario Draghi gave on Friday evening. He didn’t make any mention of the negative aspects of the Euro gaining strength, which has led investors to believe that the ECB are on course to start ending their stimulus measures in the Autumn. This has helped strengthen the single currency further this morning, pulling the GBP/EUR rate to a new 8 year low of €1.0750.
As you can see from the chart above, over the last month or so Pound/Euro rates have now fallen from €1.14 to €1.0750, and predictions from some that the pair will reach parity before the end of the year are now looking more and more likely. In my view, the Pound is unlikely to strengthen until progress is made with UK/EU trade talks, and that’s not likely to happen until well into 2018. In the short to medium term, the Euro could continue to rise if economic figures from the Eurozone continue to impress.
Elsewhere, the news that North Korea have fired a missile over Japan has also caused some market jitters, with investors now having less appetite for riskier currencies. This has weakened the AUD, NZD and CAD and strengthened safe haven currencies like the US Dollar, Swiss Franc etc.
For those with a currency transfer to make in the coming months, the current market conditions are volatile to say the least. To get a free quote on the rate we can offer, or simply discuss which way the market is going with an expert currency broker, click here or complete the form below.