It has been a fairly quiet day with regards to GBP/EUR rates, with a high of 1.1807 and a low of 1.1771 but I think this could all change tomorrow. There are a couple of very key data releases coming out tomorrow which have the potential to rock the markets. First up at 12pm we have the Bank of England (BoE) Interest Rate Decision where we will find out whether The Bank of England have decided to alter interest rates and we will also see if they have decided on any further Quantitative Easing (QE) in the UK. This will be shortly followed by the same announcements from the Eurozone.
It is widely thought that QE could be announced by both parties which could start off a severe tug of war between Sterling and Euro. My opinion is that if this is announced in both the UK and Eurozone volatility with GBP/EUR rates will be rife and the difference between the high and low of the day could be quite a way away. There is the possibility that only one of the two will announce further QE which would generally weaken that specific currency and we could see the opposing currency soar against it.
GBP/EUR rates have been very volatile for some time now and I can only see this adding to it. If you have an upcoming currency requirement then we have a number of different contract options that can help safeguard your funds against large market movements. If you would like to talk with one of our highly professional, experienced currency brokers then please contact me direct at [email protected]