The Pound vs the Euro has remained in a fairly tight trading range during the last few weeks as the markets have been struggling with what may happen next with the Brexit talks.
Economic data from the UK has been rather mixed in recent weeks and the uncertainty concerning the UK’s future relationship with the European Union has kept Sterling under pressure.
However, all is not necessarily gloom and doom for the UK economy as earlier this week Bank of England Deputy Governor Ben Broadbent has suggested that although he does not know if interest rates will go up this year there are signs that they will be going up in the coming years.
In an interview this week Broadbent, when asked about interest rates, said ‘…over the three-year period of the forecast, I think we had another two or three.’ With the central bank having increased interest rates towards the end of 2017 the current level is back to where we were prior to Brexit.
In the short term, this is unlikely to have any effect on exchange rates but it does show that there is a small appetite going forward.
Turning the focus back to what is happening on the continent the Euro has hit its best level against the US Dollar since 2014 after news reports that a breakthrough in coalition talks to form a government in Germany after weeks of uncertainty. This has also seen GBPEUR rates move in a negative direction, which is good news for those looking to convert Euros into Pounds.
The European Central Bank’s minutes published on Friday have also suggested that it could be looking to change its monetary policy going forward as the Eurozone’s economy has been recently improving.
On Tuesday we have the latest release of UK inflation data due out and this can have a big influence on the value of Sterling exchange rates as it will affect the Bank of England’s views on monetary policy so if you’re in the process of making a currency transfer keep a close eye out on the release.
If you have a currency transfer to make and would like a free quote compared to using your own bank or simply want to compare rates to buy or sell currency against your current foreign exchange provider then feel free to get in touch for a free quote. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help save you money on exchange rates.
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Tom Holian email@example.com