GBPEUR rates have again gone up towards the 2 year high we have seen last week for the first time. It is a level that I expect to continue to creep up this week as UK data both tomorrow and Friday are expected to be positive. This includes Bank of England minutes tomorrow and UK GDP figures on Friday. The general view is that rates will creep up, not by large amount like we saw within the last 30 days which was close to 4% but by small amounts. A majority of change I expect next after the summer break through August so September onwards. This is when speculation will build about when Uk interest rates will climb which in turn will create volatility and opportunity.
Euro sellers however may want to limit exposure and move sooner rather than later as a result.
For more information on what is creating this opportunity in the market and when you should potentially move contact the author STEVE EAKINS via [email protected]