Sterling rates continue to show signs of improvement

Many people have been discussing about the changing forecast of interest rates in the UK and how this could impact the rates significantly.  I myself have also highlighted this potential event in the future.  However as the head of the Bank of England seems to re-confirm that he is not going to change rates for a pro-longed period of time, have rates already priced this in, are rates actually not going to correct?  This argument I think is becoming equally as strong meaning if you are holding euros and waiting for a pop you may be waiting for some time.  He has hinted it will be the Monetary Policy committee within the bank to make the majority decision and that any change will happen potentially on Februaries Inflation Report, which is weeks away.

In the nearer future we have UK GDP figures due on Tuesday next week, this is expected to show yet more gains in the strength of the UK economy which could easily push the value of the Pound up higher.   GBPEUR traders needing to move this month could be wise to wait for this event.  If you have longer than that however I can see the argument to wait and see but please respect that levels are at  13 month high.  Last Feb/Mar we saw GBPEUR levels drop by over 4 cents so things can change very quickly. Contact us today to register your interest in the markets.

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