Sterling Euro exchange rates have hit a 2 month high to buy Euros as UK Retail Sales came out much better than expected owing to the recent increased spending during the Rugby World Cup.
Added to this was the comments during the ECB’s press conference on Thursday afternoon with president Mario Draghi strongly suggesting that interest rates could even be cut and that the current round of QE could continue.
QE is currently outlined to continue until September 2016 but Draghi suggested that the amount could be increased in December to combat falling inflation levels on the continent.
The problem for the single currency is that if more Euros are made available via the printing press this in theory would devalue the Euro which was the reason for the huge movement in the favour of Sterling vs the Euro.
The ECB have also expressed their desire to have a weak currency as this helps Eurozone exports and in theory helps to strengthen their own economy.
Next weeks sees the release of UK GDP figures on Tuesday morning and with GDP having been downgraded earlier this month the announcement could see further volatility for Sterling Euro exchange rates.
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]