GBPEUR rates, ECB interest rate dropped, when to buy (Steve Eakins)

GBPEUR rates climbed again this week following the news and commentary that the European Central Bank are open to lowering their interest rates in the coming months.  Mario Draghi stated that he was open to negative interest rates for over night holding of funds for banks which created the negative tone for the euro, giving buyers the chance to buy euros at the near high experienced last week of a 4 month high.  SPIKES do not hang around for long and it is these kind of opportunities that have to be taken to get the best price; after all we only know it was the highest point on the market once it starts to fall again.

If you would like SPIKE NOTIFICATIONS register your interest via email at hse@currencies.co.uk with your contact details, currency pair, volume and information to do with the availability of funds and time frames.

So what next for GBPEUR rates? When to buy euros?

Well it is safe to say that recent news for the pound has been very positive in comparison to the negative outlook over the last few months, which has attributed to why we are at these highs however it will be data to come that will drive levels in the future.

Monday is a bank holiday for the UK but that is not to say that markets will not move.  The Europeans release their Retail Figures which are expected to fall and a further speech from Mario Draghi is also expected.  His tone this week has been fairly negative for the euro so buyers may wish to wait till next week to make their move. Sellers may however want to move before this and contact us today – don’t be scared to ask for a quote – email hse@currencies.co.uk with your details.

The biggest news for next week in my opinion is the Bank of England Interest rate decision on Thursday.  Over the last few months there has been a building impression that more QE could be seen form the bank but we are yet to see it. If we were to see this be announced I would expect rates to drop as the value of the pound falls, by perhaps as much as 1.5 cents adding a £1,600 to a €150,000 purchase. I however think that QE is unlikely to be announced until next month.

If you want to discuss how the next week could affect your currency exposure then speak to the experts by contacting us to go through it more personally.  Either call and ask for myself Steve Eakins or email me directly at hse@currencies.co.uk