Sterling Euro Exchange rates stay flat – What will happen to the Pound Euro rate in the coming weeks?

This week has been extremely flat for Sterling Euro exchange rates even though we have had quite a bit going on. We have had a bailout request from Cyprus, Public Sector Net Borrowing figures for the U.K were poor, mortgage approvals fell to a 13 month low for May and we have a European summit in action today which could throw absolutely anything into the mix.

Rates have been range bound between 1.2450 and 1.2540 which has not really awoken much for us to talk about and probably is farily good for you if you are looking to sell Euros in the near future as there is no doubt anyone with this kind of transaction to carry out must be very wary as personally I feel the Euro is a bit of a ticking time bomb as it stands.

The banks in Spain will be a talking point this year and from the reports I have read I think a few are in much more trouble than they are letting on so this will blow up and be front page news again later in the year which should have an adverse effect on the strength of the Euro.

On the flip side, the Bank of England never seem to like to allow the Pound to gather too much strength and the mention of further Quantitative Easing and even the potential of an  interest rate cut a possibility in the near future we may see Sterling start to lose strength again soon, as an interest rate cut it generally seen as negative for the currency concerned due to making it less attractive to investors.

If you have an upcoming transfer to make involving Sterling or Euros then it is key to have a proactive currency broker on your side that will not only get you the best rate when you decide to carry out the transfer but will also keep you fully up to date with what is going on in the markets. If you would like to speak to me directly then feel free to email me on djw@currencies.co.uk quoting Pound Euro Exchange as your subject title and I will be more than happy to assist you.