Have Sterling Euro Rates hit their Peak? (Tom Holian)

GBPEUR Rejected by 1.17 Price Level Again

Sterling vs Euro seems to have plateaued recently with GBPEUR rates trading just above 1.26 for the last few days.

With UK GDP figures hitting their highest level since their previous peak reached in 2008 typically this would have seen Sterling rise higher. However, owing to the lack of increase for the Pound it appears as though we have little further room for improvement for Sterling Euro exchange rates.

Indeed, there have been a few articles suggesting that Sterling is over valued by as much as 5%-10%. Personally I think this is not accurate however I do agree that Sterling has the potential to fall in the short to medium term.

With the disparity in house prices across the UK with 7 out of 10 regions seeing a fall in house prices according to the Land registry the housing market could be the biggest factor in Sterling’s potential demise.

Out this week we see the release of German retail sales due out in the morning and as the country is the Eurozone’s leading economy any change compared to the expectation could see volatility for Sterling Euro exchange rates.

If you have a currency transfer to make and want to save money on exchange rates then contact me directly for a free quote Tom Holian [email protected]