GBP/EUR rates of exchange cannoned down since Thursday afternoon with the announcement from the Governor of the Bank of England, Mark Carney, that interest rates in the UK will not be rising again until 2017 at the earliest. That is not a typo, 2017 and not 2016.
Immediately following the news, and until Friday morning, GBP/EUR fell from from a high of 1.42 to lows of 1.38. This is expected to continue as more investors and companies throughout November begin to look elsewhere for better returns in 2016. The mass sell-off of Pounds will cause further Sterling weakness and therefore further slides on GBP/EUR.
As an indication, similar announcements of delays last month caused GBP/EUR to hit 1.33.
Luckily for Euro buyers, the Euro weakened this afternoon from a sudden outflow of capital into the USD following incredibly positive employment news for the US economy.
The USD/EUR is the most heavily traded currency pairing in the world, so the general rule of thumb is that when one strengthens the other weakens.
This is a small respite for Euro buyers in a month which is expected to make the single currency incredibly expensive for Euro buyers to purchase. As such, moving sooner rather than later would by wise.
I strongly suggest that anyone with Euros to purchase in the coming months should contact me on [email protected] to discuss a strategy on your transfer and receive a competitive quote on your exchange. I have never had a problem beating the rates of exchange offered elsewhere, and these current levels can be pegged for up to a year with just a small deposit, to avoid rates moving against your favour.
Those looking to sell Euros can do the same, and we can discuss a strategy to help you ride the expected movements in your favour to help you buy at the high of the markets.