Yesterday we saw the Euro strengthen due to rumours that Greece would receive further funding to ease their monetary problems. GBP/EUR rates hit a low of 1.2414 throughout yesterday, pushing the 1.24 mark and are currently remaining around these figures today. This week we will see some important data releases with regards to GBP/EUR rates and we could see quite a bit of pressure put on the two currencies depending on the decisions and announcements made. Tomorrow we will see the release of the Bank of England minutes and on Thursday the EU leaders summit kicks off.
When The Bank of England minutes are released tomorrow it will show exactly how many members voted for and against another round of QE (Quantitative Easing). If these minutes show any sign that we could see another round of QE then this could have a negative effect on the Pound and push these rates down even further, however if this data shows that no members thought that further QE was necessary then this could help the Pound strengthen, with QE in the near future very unlikely. The EU leaders summit on Thursday should shed a bit more light on the situation surrounding Greece and other Euro zone members. If the rumours are true and there is an announcement that Greece will receive further funding then we could see the Euro strengthen even more against Sterling with investors seeking to cash in on a slightly stronger Euro zone economy.
If you would like to speak with one of our specialist currency brokers regarding any currency requirements that you may have or for our expert opinion on market movements then please contact the dealing floor directly on 01494 725 353, alternatively Email Alistair at [email protected]