Anyone with a GBP/EUR requirement should be keeping a close eye on developments ahead of Wednesday’s Bank of England (BoE) minutes. These minutes give us a key insight into the BoE’s latest monetary policy meeting and whether there was any indication that they would be extending their Quantitative Easing (QE) programme or if we are likely to see a change in the base interest rate, which currently stands at 0.5%.
It is widely anticipated that UK interest rates are likely to stay low for the foreseeable future and BoE governor Mark Carney recently stated that he did not feel another round of QE was necessary at this time. However market sentiment can change very quickly and despite and upturn in fortunes for the UK economy recently, we still have a long way to go before it truly stabilises.
Personally I think we will see the Pound hold its value against the EUR but any move up towards 1.20 will require another shift in market sentiment and at present I think we are likely to see rates fluctuate between 1.17-1.19 in the build up to Christmas.
Here at Pound Euro Exchange we have a dedicated team who can help you navigate the currency markets and provide the key market analysis around any transfer. If you do have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or just wants a rate comparison with your current provider then please feel free to contact me directly at [email protected], or you can call one of the team on 0044 1494 787 478.