Where next for Sterling vs Euro (Tom Holian)

Pound to Euro Rate: GBP Falls on Virus Fears and Manufacturing Data as EUR Rallies

Sterling Euro exchange rates have had a very good month and hit the best level to buy Euros in 8 years as the Greek crisis continues and Bank of England governor Mark Carney suggesting that the UK could potentially raise interest rates over the next few months.

This has created excellent opportunities to buy Euros but I think it could be short lived as the UK releases second quarter GDP figures on Tuesday morning.

With the previous quarter showing growth of 2.9% I think it will be difficult to maintain these levels therefore I expect to see Sterling fall vs the Euro on Tuesday following the data release.

On Wednesday the FOMC in the US release their own interest rate decision and any mention of a rate rise coming could see Dollar strength which often leads to Euro weakness.

Therefore, if you need to buy Euros you may wish to wait and see if the news is positive on Wednesday evening meaning a purchase of Euros with Sterling on Thursday morning could be a good opportunity.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]