Sterling exchange rates up against the Euro, will we see 1.28?

GBP EUR Exchange Rate: Weekly Review July 16  

Sterling exchange rates have rallied against the Euro today dominated by Euro news and the uncertainty surrounding the ECB (European Central Bank) and its bond buying policy. Most notably the Bundesbank has come out and warned that a continuation of this programme may cause “considerable risks to stability”. This will make the next ECB meeting very interesting as many analysts are expecting something strong from Mario Draghi (head of the ECB) following his statement that he would do ‘whatever it takes’ to secure the Euro. Statements like this from the Bundesbank will do little to put faith back in the Euro and as a result we had seen the pound gain nearly 0.6% – these levels have retraced this afternoon however. But why? In my opinion the pound has not gained further ground due to negative expecations for the revised UK GDP data set for release on Friday. Expectations are for figures to fall further into negative territory from -0.3% to -0.5% and should this be the case I would expect sterling exchange rates to fall against the Euro on Friday and to come under pressure up until the release scheduled at 09:30 Friday morning.

Should you be looking at a GBP/EUR position this week and you would like to discuss the data sets that might affect your position then please email Mike at [email protected] or call 01494 787478 and I will happily run through my thoughts and opinions on this very volatile pairing. As one of the UK’s largest currency brokers we have access to award winning exchange rates and multiple sources to get you the very best market price. We also have a number of different contracts to suit all day to day transfers, from property completions, pension or mortgage transfers and regular corporate transfers. Contact Mike on [email protected] to get more information.