GBPEUR rates at risk (Steve Eakins)

GBP EUR Starts the Week with 1.1800 Test

Today we have a busy day on the markets and could move the price of the euro by a cent, costing you potentially anything up to £2,250 more for a €200,000 purchase.  The reason being we have both the Internet Rate Decision for the UK and Europe, plus the latest figures about the GDP for Europe

Interest rates are expected to stay on hold both in the UK and Europe however following the release in the single currency a press conference is scheduled.  This press conference will probably have tough questions for the bank to answer about the future of the debt buying program in Greece, why Eurozone Retail Figures have been falling and again why there are over 14,000,000 unemployed.  Most of these subjects have been well documented so I don’t expect any significant movement, in fact I expect the Interest Rate Decision to be a non-event this afternoon. 

EU GDP figures are expected to show an improvement this morning which will probably be the biggest mover today, this should make buying the single currency more expensive so buyers may want to move sooner rather than later.  Euro sellers that have not already moved at the close 6 month high, may want to move following this release?

There is one more potential wild card that could move markets today.  Following yesterday’s UK Autumn statement when the government confirmed that they will be missing savings targets, and debt targets the current AAA credit rating is at risk.  This is of a big concern as if the UK is downgraded, borrowing costs will go up internationally and sterling could really weaken. We will be waiting for news from the major credit rating agencies with regards to their thoughts of the budget and the future rating of the UK, if they raise the alarm bells that is could be lost I would expect Sterling’s value falling. 

If you are looking to move money internationally and want to make sure you are achieving the best exchange rates, feel free to contact us for a free quotation.  Here we have been helping people do this for over 12 years, we have a number of awards for both our service and rate of exchange, so I am very comfortable we will be able to help. Otherwise we would not be in business. Contact us on the normal number or via email at [email protected]


Steve Eakins

Elite Trader

Foreign Currency Direct PLC

[email protected]