The Pound gained against the single currency yesterday, pushing into the €1.14’s. It was developments in the Eurozone that caused the move however, rather than any strength in Sterling. There are concerns over political turmoil in Italy due to their inability to form a government, raising fears of fresh elections in the country. This weakened the Euro making it a little cheaper to purchase.
GBP/EUR rates are within 1.5% of the best we’ve seen since last June, so it’s a good time for those that need to convert Pounds to Euros. There are significant downside risks for Sterling due to the fact the BoE are unlikely to raise interest rates tomorrow. You can read my detailed post on ‘Super Thursday’ and how it could affect the Pound here. If you are looking for the best currency exchange rates then click here to get a free quote.
Pound/Dollar rates have hit a fresh 4 month low today. This is in part due to Trump pulling out of the Iran nuclear deal. This has sent oil prices higher and pushed treasury yields up too, strengthening the USD. The Dollar has gained against the Pound and the Euro also due to interest rate differentials. The US are raising interest rates this year while the UK and EU are not expected to any time soon, boosting the USD’s value.
Will the Pound go up or down this week?
Much will depend on tomorrow’s news from the UK, when a raft of data is released on ‘Super Thursday’. It all comes down to what the BoE say tomorrow, what the inflation numbers are like, how the MPC vote on interest rates, and what the markets can glean from what the governor Mark Carney says.
I believe that it is more likely the Pound will drop tomorrow rather than gain, unless we see a surprise interest rate hike that in my view, is now very unlikely. For this reason, those that need to convert Pounds to a foreign currency may wish to get in touch to discuss their options. We offer a free consultation over the phone, during which we can discuss your requirements, timeframe and attitude to risk, and outline options you can consider to ensure you make an informed decision on when to fix an exchange rate.
We can also provide you with a free quote to see how much you can save compared to using your bank or another currency broker. Typically we can achieve rates that are up to 3% better than available elsewhere, meaning you could save thousands when converting large sums.