UK and Eurozone Interest Rate Decisions today have the potential to rock the markets. (Alistair Ryan)

Today is set to be a busy day with regards to GBP/EUR rates. At 12pm today we have The Bank of England (BoE) Interest Rate decision, here the BoE will announce whether there is to be any change in UK interest rates and we will also find out whether there is to be any further Quantitative Easing (QE) in the UK. Following this announcement we will see the same data release come out for the Eurozone and a speech from European Central Bank (ECB) president Mario Draghi.

As both the UK and Eurozone economies are struggling at present a few analysts believe that both could announce further QE today to ease their monetary worries and pump more money in to each economy. This could have a huge effect on the currency markets and we could see a very strong tug of war between Sterling and Euro.

Personally I don’t expect either the UK or the Eurozone to announce any further QE for now but I do expect a lot of volatility with GBP/EUR rates. There is usually a lot of speculation around the interest rate decisions and investors generally get very wary building up to it. For this reason I think we could see GBP/EUR rates move quite significantly between the high and low of the day today but I would expect more Euro strength after Mario Draghi has spoke later on.

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