Sterling under pressure ahead of the Bank of England Minutes – GBP/EUR forecast

Pound to Euro Rate: GBP Falls on Virus Fears and Manufacturing Data as EUR Rallies

Sterling exchange rates have started to dip fractionalyy this morning in the run up to the Bank of England minutes released at 09:30. This important data set should be keenly viewd for anyone with an interest in the GBP/EUR pair. In the minutes the 9 members of the MPC (monetary policy committee) from the Bank of England will show how each individual voted with regards to future interest rate policy and whether quantitative easing (the act of priniting money in its simplest terms) was discussed. Rumours had been escalating in the run up to the interest decision at the beginning of the month that Mervyn King and his colleagues may consider cutting the already record low base rate from 0.5% to 0.25%. The outcome was to keep rates on hold but it will be interest ing to see if any of the members voted for a rate cut, and if they did I would expect this to put pressure on Sterling and a move towards 1.26 seen. Likewise should the committee have discussed QE and the possibility of increasing the £375bn already allocated, then again we could see a move to the downside for the pound.

Should you have an upcoming requirement to buy or sell Euros then make sur eyou are gettinmg the best rate for yoru exchange. Through using the services of a specialist currency broker you will have access to muliple commercial sources and a number of different contracts tailored to suit your particulalr currency need. To discuss this and my views on the market and for assistance with your fx requirements then please email Mike at [email protected] and I will happily run through the service we provide in more detail.