Sterling Euro exchange rates are trading at their highest levels to buy Euros since summer 2015 and the high prior to that was 8 years ago.
With the strong possibility of further QE at next Thursday’s interest rate announcement by the ECB this is one of the main reasons why Sterling has remained so high vs the single currency.
The problem for the Eurozone is that inflation has struggled since QE was officially launched back in March 2015 and with the central bank already having claimed it will do whatever it takes to combat low inflation we could see further QE next week.
The Eurozone announces inflation data on Wednesday and no signs of improvement could lead to adding to the programme causing Euro weakness.
However, the risk for anyone needing to buy Euros is that if no change takes place we could see Sterling fall very quickly against the Euro.
Therefore, it may be worth taking advantage of these current rates by opting for a forward contract to remove the uncertainty of what may happen late in the week.
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]