What will happen with the GBP/EUR exchange rate after the interest rate decisions in the UK and Europe on Thursday

As it is the 4th of July there is no data to come out from across the pond. Over here in the UK and Europe trading lines are still open and data releases are effecting the markets. Some of the key market movers that you should be wary of tomorrow is as follows:


12:00 – BoE Interest Rate Decision

12:45 – ECB Interest Rate Decision

13:30 – ECB Monetary Policy Statement

13:00 – US Non-manufacturing PMI

This morning the EU released their retail sales for the region and it showed a decline down to -1.7% for the year but showed an increase for the month or May to 0.6% This has marginally strengthened the Euro against the pound during early morning trading.

You will see from above that the main market mover will be the interest rate decisions for the UK and in Europe tomorrow. There are many economists that are predicting that we will see QE arise in the UK (theoretically negative for sterling) and some are muting a rate cut for the Euro zone. Tomorrow is set to be a volatile day and if you are concerned about what may occur and would like to know the implications of any movements then please feel free to email me at [email protected]  It is so difficult to predict exactly which way the rates will move and you may wish to look at placing limits in the market or secure your currency before the big decisions. Overall it would not surprise me to see the pound fall against the Euro by close of trading.

In other news The ex-chairman of Barclays is set to go in front of a panel today in connection with the LIBOR scandal. I for one feel that this story has a long way to run. Barclays have been hit with a record fine (£290m) and I am sure over the coming days and weeks we will learn that the scandal is likely to involve many other banks both here and across the pond. The banking sector has been rigged with controversy recently. The banks are under fire for their role in the financial crisis, are facing a new wave of public outrage over a systems outage at RBS last month and evidence of mis-selling financial products continues.

It is no wonder that here at www.poundsterlingforecast.com we are witnessing record breaking applications from clients looking at using a specialist for their currency needs. The trusts from the banks have diminished as they are a jack of all trades and master of none. If you are looking for a personal and bespoke service to help you maximise your currency transfer then join the thousands who currently use our service to send money overseas. Please feel free to contact me at [email protected]. If you inform me what your situation is I will explain all the options that are available to you to try and help you minimise your risk to volatile currency movements. Alternatively you may call me from the number on the side of this page. Just ask to speak with Ben Amrany and I will make sure that I am available to discuss all the options that are available to you.

Ben Amrany