GBP/EUR back over 1.21. Attractive buying Euro rates (Ben Amrany)

Key UK inflation figures were released this morning and has given the pound a tidy boost after weakening against many of the majors overnight. UK BRC retail sales monitor came in much lower than expected with a reading of -1.7%  against the consensus of -1.0% This did hurt the pound in early morning trading with GBP/EUR falling to 1.2067. Inflation figures measuring 1.6% assisted a rebound. Now although CPI is below the Government’s 2% target many analysts were predicting a steeper fall which would have raised questions whether the UK economy could cope with an interest rate hike next year.

The retail figures go to show that competition on the high street is fierce and is assisting this drop in Inflation. Now, should inflation remain low and stay below wage rises then this will give the BoE some relief that an interest rate hike next year could be coped with by the economy. This is what has given the pound a boost. If wages rise at a lower rate than  the inflation figure then the public would have less to spend and could cause a hole within the economy and the chances of a rate hike would be less likely hence harming the pound.

Looking forward tomorrow at 9.30 the key employment numbers for the UK will be very heavily scrutinized as the unemployment number is being directly linked to when an interest rate hike may occur due to the Mark Carney’s (Governor of the Bank of England) previous comments that interest rates may rise when unemployment falls below 7%.  The number is expected to fall from 7.2% to 7.1% Although this does not sound like a big movement the mere fact that we may get closer to 7% could give the pound a boost tomorrow morning against a host of the majors.  

The pound in general has been very volatile over the course of this year with significant losses against the southern hemisphere currencies in the last month but with gains against many of the majors like the USD & EUR. Depending on the currency you are buying or selling we may recommend different strategies to help you maximise your exchange. To find out my thoughts on the best solution for your currency exchange you may email me directly at bma@currencies.co.uk

If you feel that you would like assistance with an up and coming currency transfer you have to make we will strive to help you beat the rate of exchange your bank will offer you. Our savings can be up to 4% and I will also offer a very personal service to help you judge when you should buy the currency you require. if I know what your requirement is I can recommend the best options available to you.

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 bma@currencies.co.uk