The Pound yesterday had a great day trading against the Euro, gaining over a cent, adding €500 to a £50,000 transfer. A spike was seen, which meant moving quickly was key to get the best price. People that have registered for a SPIKE notification were informed at the peak and many took advantage. If this sounds of interest please register your interest via email to [email protected]. Please provide your contact details, the currency pair of interest, volumes, and ideally timeframe, so we don’t keep sending you spikes when you don’t need them!
The reason for this jump is following UK Unemployment figures and Bank of England (BOE) minutes, which gives the market an insider’s view within the Monetary Policy Committee (MPC) at the Bank of England. Unemployment figures stayed the same, but there was a surprising fall in the amount of people claiming jobseekers allowance, which dropped to a three year low. The bad news was however is that wage increase still stands at 1%, far below the current level of inflation at 2.9%. This means there continues to be a squeeze on disposable income, seen since 2008.
The BOE minutes showed that the MPC voted unanimously against change to either QE or interest rates, showing their confidence in the Pound. This is matched by the recent good economic data and the general ‘feel good’ feeling that seems to be spreading around the UK.
Personally I think that the current GBP-EUR trading level is the highest we will see for the next few days. Tomorrow there is German PMI figures which are expected to show an improvement in what is regarded as the “engine room” of Europe. This is expected to give the euro a boost towards the end of the week, making it more expensive to buy.
If you have a slightly longer term need, next week’s key days are Tuesday and Thursday. Thursday is the most important day for the week as UK GDP figures are released. There seems to be a consensus that there will be no change compared to last month however, if we see any change it has the potential to move rates by over a cent within a quick period of time.
If you are looking at moving money and wish to know how these events could affect your situation, please feel free to send me a quick email at [email protected]. I will reply promptly with information relating to your situation. Plus here we also have access to award winning exchange rates so happy to provide a quick quote too to make sure you are getting the best price.