Pound Sterling exchange rates have now hit their lowest level to buy Euros since May 2015 creating some excellent opportunities to sell Euros into Pounds.
UK industrial production data showed the biggest fall for 3 years and with the Bank of England confirming an 8-1 split in favour of keeping interest rates on hold this has caused the Pound to fall across the board.
UK inflation data is published on Tuesday with expectations for 0%.
If the data is worse then this could further weaken Sterling and add further evidence to the UK to keep rates on hold for a long time to come.
The problems during the 3rd quarter of this year for the Euro mainly focused on the ongoing debt crisis in Greece and now we have seen a resolution this has given the Euro a great deal of support.
The UK has started to show signs of slowing as UK GDP was recently downgraded from 2.6% to 2.4%.
With Sterling Euro rates having been trading consistently over 1.40 during the last quarter this is surely going to have had an impact on British exports and to me it is only a matter of time before this is reflected in economic data.
My prediction this week for Sterling Euro exchange rates is Euro strength.
If you have a requirement to buy US Dollars the FOMC minutes this week have helped to weaken the USD as the Fed suggested that they will wait and see if the fears of a global slowdown start to impact the American economy before raising rates.
US Retail Sales are due out on Wednesday and if lower than the expected levels for September this could provide a good opportunity to buy US Dollars.
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]
