The Pound Euro exchange rate is now trading at its lowest point to buy Euros with Pounds since October 2016 and prior to this the lowest point seen since 2011.
Sterling exchange rates are clearly feeling the negative effects caused by the Brexit and at the moment there appears to be little hope in sight of a Sterling recovery in the short term.
The recent Bank of England decision was for 6-2 in favour of keeping interest rates on hold compared to June’s 5-3 vote so things are clearly unlikely to change for the Bank of England’s monetary policy in the near future. Inflation has also started to fall which has led to the Pound weakening again.
The growth forecast was lowered for both this year and next and this shows the lack of confidence surrounding the UK economy and therefore the Pound.
Tomorrow morning is likely to cause a lot of movement for the Pound vs the Euro and the US Dollar as we see the release of UK manufacturing and industrial production data. Closely following this will be the announcement of the latest UK GDP estimate by the NIESR.
This will measure the last three months growth for the UK and I think we could see some problems and this could send GBPEUR rates in a negative direction.
If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.
A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on email@example.com and I will endeavour to get back to you as soon as I can.