Mark Carney speech at 10.30am today gave further strength for Sterling, as he announced the UK are not following in the footsteps of the Eurozone and falling into deflation. This is good news for sterling as the quarterly inflation report is a vital piece of economic data which can have a big impact on the UK within the currency markets. However its not all good news for GBP as the UK have their general election in the upcoming months. A general election tends to have a negative impact on the currency in question, therefore I’m of the opinion the closer we get to the election we will see a drop in GBP/EUR rates.
If you are looking to purchase Euros and have Sterling available I would recommend either buying Euros now or locking into a forward contract. For more information feel free to email me on [email protected] or alternatively call 01494 787 478.