GBPEUR remains at a very favourable level for those buying euros although this week could disrupt plans for anyone banking on trading at 1.20 in the future.
Wednesday this week sees the Bank of England Quarterly Inflation report which is potentially GBP negative. This is all to do with interest rates which could move the market rates higher or lower depending on the outcome. My personal opinion is GBP negative because I think the Bank of England will need to make reference to the difference between what they laid out in their forward guidance last year and how the economy is now performing.
I just cannot see the BoE raising interest rates anytime soon and the reference that interest rates are set to remain low for longer will I believe cause the pound to suffer.
For more information on what is driving your exchange rate and how to get the most from the market please contact me Jonathan on [email protected]