Quiet day for GBP/EUR ahead of the financial stability report tomorrow (Mike Vaughan)

Euro Suffers Losses to a Strong US Dollar and a Resilient Pound Sterling

Sterling fell yesterday morning against the euro following the Bank of England’s inflation report in which the bank was likened to an “unreliable boyfriend” due to the lack of clarity on the possibility of rising interest rates. Earlier this month Mark Carney gave hints that the Bank may raise interest rates sooner than 2015 as most analysts had expected, however yesterda’s speech may have cooled those rumours and shifted GBP/EUR levels back below 1.25 – a possible short term opportunity for Euro sellers?

This speech comes prior to another speech from Carney scheduled for 10:30 tomorrow for the banks Financial Stability report. Published twice a year by under the guidance of the interim Financial Policy Committee, it shows the Committee’s assessment of the outlook for the stability and resilience of the financial sector at the time of preparation of the Report. This report will again give further clues as to monetary policy and again could be a volatile day for the pound.

Looking at todays data and it is a quiet day from both the Euro and Pound’s point of view with focus on US GDP data that could adversely affect risk apetitie across the market, this is released at 13:30. Should you have a currency requirement to arrange and would like further information on the currency service we provide then please email Mike at [email protected]