Sterling has continued its recent demise vs the Euro following on from Mario Draghi’s comments made yesterday.
This came as a surprise to the currency markets as earlier this month the ECB president claimed that he was worried about falling inflation and that the ECB will be accommodating to any further change in monetary policy if required.
With inflation showing a fall only last week the expectation for the speech made yesterday was to be quite dovish.
However, the reverse happened and Draghi concluded that the Eurozone economy is looking in a reasonable state and that he is happy with how the Greek crisis sorted itself out in recent weeks.
With the Greek election now behind us it could be argued that the Eurozone is looking a bit more stable which alongside the comments made yesterday has created some excellent opportunities to sell Euros into Sterling.
With BoE member Andy Haldane saying a few days ago that the BoE may actually cut interest rates this has also dented confidence in the Pound.
However, I don’t think we’ll see any change in UK interest rates for a long time to come and if anything I expect them to go up when a change is made.
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]