With GBPEUR rates sitting pretty at over 1.42 for the past week, the point has finally come whereby the rate has been brought slightly back down to earth today, actually falling as low as 1.413 at point.
First thing this morning saw the release of German GDP data. This came out as expected at 1.8% year-on-year. With the German economy being the largest within the Eurozone, any positive data that comes out of it can help to strengthen the single currency. And this is exactly what we saw, with the GBPEUR rate being pushed down just below the 1.42 line.
The much awaited UK inflation hearing by the Treasury Select Committee finally went ahead today after a two week delay. Chief Economist Andy Haldane spoke dovishly about the UK inflation outlook, stating that falling oil and commodity prices have been the biggest single factor on inflation as of late. He even went on to say monetary “policy needs to be poised to move in either direction in the period ahead, depending on how the data and risks, domestic and international, play out”.
This highlights that an interest rate hike in the UK is far from taking place, and a drop in rates could even occur first. On the back of this Sterling took a hit with rates falling to 1.413, before rising slightly back up to around 1.416 later on in the day.
Despite this drop down in the GBPEUR rate it is still actually sat in some of the highest territory climbed to this year, and gives those seeking to purchase Euros a superb opening to do so. Those looking to sell Euros may well want to take advantage of this approximate 1cent spike in Euro strength. If you were selling €200,000, yesterday’s high compared to today’s low would have meant an almost £1,600 difference to you.
To make the most of your currency transaction, whether buying or selling Euros, please contact me directly at [email protected] where I can run through all the available options and find the one best suited to you.