GBP/EUR best exchange rates – final opportunity before UK interest rate decision (Joshua Privett)

‘Super Thursday’ is upon us once more, and significant volatility is expected on GBP/EUR exchange rates.

The first Thursday of each month is there the Bank of England interest rate decision is released, the split on the vote between the 9 deciding members, and the accompanying monetary policy statement for the UK economy.

Following the bottoming out of interest rates as a result of the 2007/8 financial crisis, arguably the largest single determinant of a currency’s value is its timeline to raise interest rates once more.

This time each month since August has caused repeated weakness for Sterling as the timeline to raise interest rates has been repeatedly pushed back. The average fall on GBP/EUR has been 1.8 Cents. Last month, rates fell to their lowest levels since February.

Little has changed in the global landscape for markets to not expect more of the same. The UK is still battling their lowest levels of inflation since records began, and the slowdown in China will take years to correct – one of the reason’s why they recently abandoned their one child policy this week.

With the major reasons still in place which have made the BoE anxious about raising rates since August, markets are expecting further delays once more and a fall in Sterling’s value parallel to this.

It’s rare that one of the most important events on the monthly financial calendar to affect GBP/EUR exchange rates has become so predictable.

A fortunate overnight event has presented a further opportunity for those looking to buy Euros ahead of the news tomorrow. VW announced that the scandal has now prompted an investigation into their petrol powered cars as well, which has almost doubled the expected effects on the German automotive industry, and weakened the Euro by about half a cent. GBP/EUR is now marginally above 1.41 as I write this article.

This movement overnight is a gift when GBP/EUR rates of exchange yesterday had already begun to tick down ahead of the interest decision out tomorrow.

I strongly recommend that anyone with Euros to buy, even if the requirement is not until the first few months of 2016, should contact me on 01494 787 478 and ask the reception for Joshua to discuss a strategy for your transfer. I will explain these currently high buying levels can be secured to avoid any harmful effects against your Euro purchase occurring. I can also offer a competitive quote on your transfer, and have never had a problem beating the rates offered elsewhere. [email protected]

Euro sellers can do the same, and we can explore how best to ride any movements in your favour to their peak which occur tomorrow.