GBP/EUR exchange rates were sitting comfortably in the 1.42’s at the start of the day. However, poor construction data, a under-achiever in the British economy as of late, caused rates to drop into 1.41 territory, and are now oscillating between 1.41 and 1.42.
While there was an improvement in business conditions for construction, it was nowhere near as much as expected. Exchange rates were priced in to the higher figure expected, with a surprisingly lower figure there was a market correction in favour of Euro sellers.
Until Thursday, when the Bank of England interest rate decision will be announced, a few pieces of data will be on the radar for Euro sellers to benefit from. Tomorrow retail sales figures will be released for the Euro zone as a whole – a strong performer in recent months for the Euro, as the introduction of Quantitative Easing in January and the slashing of interest rates has given less incentive for those in the Euro zone to save their money. So EUR-GBP transfers could experience further favourable movements tomorrow.
This will likely be a short respite. The interest rate decision in the UK this week will probably show a few members of the board changing their tune and their voting habits. Previously the 9 members have unanimously rejected rises, if even one moves into the pro-column, Sterling strength can be expected.
Those looking to sell Euros in this short window should call 01494 787 478 and ask for Joshua. Alternatively, email me on [email protected] overnight to discuss how to maximize the value of your Euros before any further rises.