Sterling gained a little more ground after UK unemployment figures were released this morning, backing up a very good day yesterday after the inflation figures. All the positive news must be ramping up pressure on the Bank of England to raise interest rates, and whilst they voted to hold interest rates this month, we wont know if it was a unanimous decision until next week when the official Minutes are published. If any member has dissented with the majority and voted to hike then we could see sterling rise further, although a 9-0 to hold could dent sterling’s recent surge.
The Euro has suffered from consistently weak data and the recent rate cut from the ECB, but there is also pressure from the fact that Mario Draghi may have left the door open for further intervention. The prospect of a European Quantitative Easing is hampering the Euro as you only have to look at what happened to the value of the Dollar and the pound during similar policies.
If you need to make a currency transfer then the next week could be a great buying opportunity for GBP EUR rates, just in case the Minutes don’t show calls for a hike and the ECB take no action resulting in the rate falling. If you would like assistance please feel free to email Colm at [email protected] and I would be happy to help.