Despite poor UK inflation figures (the lowest in nearly 10 years), the Pound has rallied in to very strong levels north of 1.28. We are approaching the 3.5 year high seen right at the start of 2015 of 1.2910, primarily based on a statement released by the Eurozone Central Bank. Benoit Coeure was quoted in the German paper ‘Die Welt’ this morning as saying, ‘The Eurozone Central Bank is in a position to take a decision on Jan. 22” even as that “doesn’t necessarily have to mean that we will actually take a decision”. This has lead to a lot of economists and analysts believing that a full Sovereign Quantitative Easing program will be announced at the fiscal policy meeting on 22nd January.
As the GBP EUR rate is so strong currently, Euro buyers should seriously consider taking advantage. As much as there is the potential for further Euro weakness, consideration should be given to what’s going on in Blighty! This years General Election could quite possibly be the most open for many years, with the Euro sceptic UKIP party in with a good should of winning seats. UKIPs outlook on The Eurozone (the UKs primary trading partner) scares a lot of investors, so positive news for Farange followers could mean negative news for the Pound.
If you have an exchange (be it buying or selling Euros), please feel free to contact me on 01494 787 478 / [email protected]