Quarterly Inflation Report key to GBP Forecasts tomorrow

Pound to Euro Forecast - Leadership Contest Drives GBP/EUR Rate Lower

GBPEUR rates have remaining flat over the last 48 hours as Europe and the commonwealth pay their respects to the fallen.  The market however will return into action tomorrow and there is lot of UK data which will impact markets. Wednesday is arguably the busiest day for the month left with UK Quarterly Inflation Report. This will give the market a clearer view of the banks views and forecasts on the UK economy and ultimately when the bank may hike up interest rates. Interest rates are a key topic and one of the largest that impacts the value of currency. The theory is that as interest levels change the amount of foreign investment changes and with that change in demand the currency’s value swings. This is not just happening when they are actually changed but well before that as markets try and second guess what is coming.

As a result tomorrows data in the UK at 10:30 is key for exchange rates moving forward. If you are looking at changing money in the near future then please do keep an eye on this key event. Get in contact for more information via [email protected]

My view – rates are likely to go down, not up. Helping people that want to buy Sterling not sell it.