GBP EUR has had a rocky ride today (as forecasted), primarily driven by the European Central Bank announcement by Governor Mario Draghi. Analysts had expected Draghi to finally announce a monetary policy to stimulate the European markets in to moving away from potential recession. Draghi however strengthened the Euro, by indicating that if Quantitative Easing were required then it would be early next year at the soonest. It would seem then that the markets had ‘jumped the gun’ by pre-empting the worst and crashing the Euro value – hence the market going above 1.27 for extended periods of the last 24 hours.
Looking forwards, the ECB release their GDP figures at 10:00 tomorrow morning. A slight improvement is expected Quarter on Quarter, so you may see a little Euro strength early doors. Later on (13:30) the US releases what is its most volatile data set – Non farm payrolls. Non Farm is volatile as it is an incredibly hard figure to predict. As EUR USD is the most heavily traded currency pairing on the planet, major USD shifts affect GBP EUR.
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