Euro strengthens to 1.1975. Best rates for selling Euros (Ben Amrany)

GBP EUR Lower Despite Weaker Euro Data 

So the two interest rate decisions came and went in both the UK and Euro zone. It was a bit of non event which was expected as both central banks kept rates unchanged and GBP/EUR at one stage dipped down to 1.1975 before stabilizing back up above 1.20.

Most of the news was from the Euro zone side where the central bank President Mario Draghi played down deflation by stating there was not an deflationary issue and they will have to look at the upcoming economic data before deciding what stance to take. The markets were not expecting Mario to play down deflation but was instead predicting a potential rate cut or at least some signs that this was in the pipeline. This was the main reason why the Euro started to strengthen as there were no signs of further rate cuts. If the central bank continue with this tone then we may see further Euro strength in the weeks to come.

Going forward you now have to try and work out what the next levels may be. I feel that if we see GBP/EUR fall below 1.20 and stay there for a day or two you may see this dip continue for the next week or so. However with a lot of economic data out for the UK should it be positive then 1.20 upwards may be here to stay for now.

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at [email protected]