The current outlook for GBPEUR is that the rate will probably drop lower. It is therefore more likely we will see 1.20 before 1.25. This is because despite problems in the Eurozone it is probably more likely we will see some more QE by the Bank of England which will cause GBP weakness.
There is the prospect of a further interest rate cut in the Eurozone but on balance I think it more likely we will see the rate drop to a poor performance of the UK economy. The UK’s debt problems are significant and investors are right to be concerned about the UK losing its credit rating.
If you are considering buying Euros I think now is the time to act to avoid disappointment down the line.
If you would like more information about how to get the best deals on currency transfers and what is driving this market please contact me directly on 01494 787 478 or email [email protected]