As expected there was no change in the Bank of England voting pattern this morning and sterling dropped off after yesterday’s gains. The pound has slowly been clawing back ground versus the Euro since 9.30 but it suggests the UK is still quite a way off raising interest rates, a sentiment that reinforces the comments from the Chief Economist for the Bank of England the other day which said the UK economic outlook wasn’t quite as rosy as the forecasts only 3 months ago.
To this end I think any big improvement on GBP EUR exchange rates will be dependent on weak data in Europe from the inflation and jobs figures next week, rather than any surge for the UK. Keep an eye on tomorrow morning’s UK retail data and GDP revisions on Friday just in case, but if you do need to make a currency transfer and want to get the best exchange rate, then feel free to email Colm at [email protected] and I would be happy to explain how our services work.
