The Pound – Euro rate of exchange has been fairly stable over the past few weeks even with all that is going on throughout Europe and indeed within the U.K banking system.
I feel that the exchange rate is eagerly awaiting the outcome of Thursday where we will see the interest rate decisions from the Bank of England and indeed the European Central Bank.
There is a small chance of an interest rate cut for both however personally I feel it is doubtful we will see any big moves in this ongoing and complicated game of economic chess we find ourselves in.
An interest rate cut is generally seen as negative for the currency concerned and a rate hike seen as positive as higher interest rates make that particular currency more attractive to investors.
The big two movers of the day in my opinion will be whether or not the U.K introduce more QE and what is said in the ECB press conference shortly after their rate decision. Last time around we saw that the Bank of England actually voted just 5 members to 4 against further QE which suggests that it was a very tight decision and just one more member needs to be convinced and we could see further introduced. QE or Quantitative Easing has generally weakned the Pound over the past few years so be aware that this could happen at any moment.
The press conference by head of the European Central Bank Mario Draghi may throw anything into the mix, he will comment on how he plans to attack the economy in the coming few weeks and months and anything he says won’t be taken lightly by investors.
If you want to be kept up to date with the latest market movements and want to achieve award winning commercial rates of exchange for your private bank to bank transfers then feel free to contact me directly and I can help you both in terms of your rate of exchange and the highest level of customer service.
I can be contacted by email on [email protected] or you can call me directly on 01494 787 478 please ask for Daniel Wright as this number will bring you straight through to our trading floor.