Sterling is slowly creeping back up against the Euro this morning after UK inflation figures come out as expected. The news helped support a pound that has been under a bit of pressure of late. To my mind it will be European inflation that is key to pound euro exchange rates, because recently the Euro has strengthened after inflation figures were slightly better than expected, leading markets to price out any imminent action from the European Central Bank. However it was a big point in Mario Draghi’s press conference that whilst he felt the Eurozone was improving, and the ECB had enough in it’s locker to combat any problems, prolonged low inflation would prove very difficult to tackle. Therefore if Friday’s German data is low, or the wider EU figures next Monday are, we could see some serious Euro weakness as the markets price in potential action from the ECB.
If you need to transfer pounds into euros, or from euro into sterling, and would like to get the best exchange rate, then please feel free to contact Colm at [email protected] or call 01494 787 478 and I would be happy to help via our currency transfer service.