GBP/EUR rates of exchange given week break with delay in inflation hearings (Joshua Privett)

GBP EUR Exchange Rate: Weekly Review July 16  

Most analysts, including myself, were expecting significant weakness for GBP/EUR exchange rates with inflation hearings set to be held this morning concerning the UK economy.

On Thursday last week the Pound took a serious hit as it was announced that the Bank of England would not be seeking to raise rates in 2016. This caused a 3 cent slide on GBP/EUR rates of exchange, and the main reason given for the rate freeze was the historically poor inflation levels the UK economy is currently posting.

So the hearings themselves, held by the government’s treasury committee, will be seeking to understand why a rate freeze has been announced, and why this cannot be solved quickly. The hard questions which were dodged in the press conference last week by BoE members will be unavoidable in this setting

As such further Pound weakness is expected which should result in further slides on GBP/EUR rates of exchange.

At midday it was announced the hearings will be delayed until next week. This is likely to spread the fallout from the announcement of a rate freeze to limit the damage done to Sterling’s value. This has given a window for Euro buyers to secure high buying rates as pressure on the Pound has lifted.

It’s rare that currency markets give guarantees of weakness to come, but again it is rare that major economic events become delayed. As such this is a gifted window for Euro buyers to take advantage of.

I strongly recommend that anyone looking to buy Euros this side of 2016 should contact me on 01494 787 478 and ask the reception for Joshua to discuss how to fix the current rates for GBP/EUR before harmful effects occur in the third week of November. Rates can be pegged for up to a year, and I have never had an issue beating the rates of exchange offered elsewhere – [email protected]