Clearly as rumours increase of a rate hike for the US in December this had led to GBPUSD rates just about managing to remain above the 1.50 levels during the month of November.
However, with US non-farm payroll data showing 271,000 new jobs this month and with Jobless Claims data due out on Wednesday I think this could provide the catalyst for the rate hike next month.
Indeed, the FOMC minutes published last Wednesday suggested that the US economy is ready for a rate hike but when it does come it is likely to be gradual.
The impact for Sterling vs Euro exchange rates is that a rate hike in the US will likely cause Dollar strength, which in turn will see Euro weakness providing some excellent levels for those looking to buy Euros with Sterling in the near future.
As well as the persistent rumours of the European Central Bank adding to the current amount of QE standing at an amazing EUR1.1 trillion this has also cause huge Euro weakness.
German GDP is published on Tuesday morning and if we see signs of a struggle expect Sterling vs Euro to hit new highs on Tuesday.
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@example.com