Sterling has once again broken 1.25 despite UK retail figures coming in slightly lower than forecast. Sterling is benefitting from an increase in interest rate projections from Mark Carney and the MPC as they suggest interest rates may go up sooner than markets expected. This should keep sterling pretty well supported at exactly the time the Euro is under fire – the ECB have cut interest rates and left the door open for further intervention if required, so the differential in interest rates could be increasing soon.
In the short term I think current levels represent a great buying opportunity if you need to transfer pounds into Euros, but recent events are also a warning shot to anybody selling Euros to act on the back of any spike in their favour as the longer term prospects for the currency pair don’t look particularly good for the single currency. If you need to make a currency transfer and would like some help getting the best deal then feel free to contact me Colm at [email protected] and I would be happy to help.