Will last week’s Sterling Strength Continue?
Sterling fought back against the single currency last week by 3% after it has hit the lowest level seen since October 2011. Although interest rates were kept on hold and QE was overlooked the future Governor of the Bank of England Mark Carney did hint that the MPC might need to start exiting unconventional policies like QE and start concentrating on over kinds of stimulus. Across the water ECB President Mario Draghi stated that the exchange rate is important for growth and price stability. The markets read into this that the Europe could be worried about a strong Euro, which could in the longer term harm their exports. Indeed, not only did the Euro fall against Sterling but also against all the other major currencies towards the end of last week.
Since the start of the year we have seen GBPEUR exchange rates move by almost 7 cents or the difference of £6,000 on a EUR100,000 currency transfer which highlights the importance of staying in contact with your award winning currency broker who can save you money compared to using your high street bank. If you have not already registered with a currency broker or want to compare exchange rates feel free to email me for a free quote Tom Holian [email protected]
Over the weekend Eu leaders appear to have reached an agreement over the EU budget 2014-2020. For the last few days the markets have held their breath in anticipation of the outcome and the new budget, which is EUR960bn, is lower than the previous amount. David Cameron has fought to keep the budget reined in has claimed the budget is a ‘good deal for Britain.’ GBPEUR exchange rates have seen the benefit of the good news by strengthening by 3% during this week or by almost EUR7,000 on a £200,000 currency transfer.
The amount is a 3.3% reduction from the previous seven-year budget, which shows that leaders are taking notice of keeping spending under control. However, it took some time to come to an agreement as France was in favour of more spending compared to Germany’s Angela Merkel who wanted to keep spending to a minimum. I think we could see some further Euro weakness early this week so if you do have a currency requirement coming soon make sure you stay in close contact with your experienced currency broker who can explain the benefits of utilizing stops and limit orders which can help you achieve your desired rate. Contact me directly Tom Holian [email protected]