Currency Forecast says: It’s been a great week for the Pound, with Sterling ralling against nearly all major currencies. We’re at the highest level against the US Dollar, AUD and NZD since the referendum. Against the Euro, exchange rates are the best they’ve been since June last year.
Why has the Pound/Euro rate gone up?
The main reason for the gains is renewed optimism surrounding Brexit. It’s looking very likely that a transition deal will be agreed by the EU tomorrow, and this has removed much of the uncertainty that has been keeping the Pound low. Economic data from the UK also continues to impress – unemployment remains at record lows, the economy continues to grow, and this morning Retail Sales figures were significantly above forecast, pushing the Pound towards €1.15 vs the Euro.
Will it go up any further?
Today at 12pm, the Bank of England interest rate announcement. They won’t raise rates, but the minutes to the meeting and any comments or hints at a rate rise in May could help the Pound further. If however they signal that inflation may come back down towards the 2% target without intervention, then the appeal of the Pound may diminish. So lunchtime today will be key to Sterling’s fortunes and will dictate whether the run will continue.
Do you have a transfer to make?
Either way it’s great news for those that need to convert a large volume of Pounds to Euros. The rate has gained almost 3% in the last few weeks, making a typical purchase of €250,000.00 over £6000.00 cheaper. If you have an upcoming transfer to make, then it’s worth seeing what rate we can offer you.