Sterling Euro exchange rates are eagerly anticipating this afternoon’s European Central Bank interest rate decision and subsequent press conference.
I do not foresee any change for either interest rates in the Eurozone or any addition to the current round of Quantitative Easing but I do think we will see a huge amount of volatility for Sterling vs Euro exchange rates during the press conference.
With Eurozone inflation remaining below 0% this is clearly a concern for the ECB and it seems that the only way to combat falling inflation is more QE as the current amount has yet to work.
Any suggestions by ECB president Mario Draghi that QE could be increased in the future is likely to weaken the single currency vs Sterling creating some excellent opportunities to buy Euros in the afternoon if my prediction rings true.
UK Retail Sales are due out at 930am this morning but I think regardless of the figures the markets will wait to react until the ECB announcement.
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]