How will a US Interest Rate Hike affect GBP/EUR? (Daniel Johnson)

GBP EUR Exchange Rate: Weekly Review July 16  

The US interest Rate decision is due on Wednesday 16th December and it could well cause madness on the markets. It is no secret that a rate hike is expected, but what could cause volatility is by how much. The general consensus is the interest rate will rise by 0.25%. The market moves on rumour as well as fact so this has already been factored in.

There is the outside chance of a raise of 0.50% , if this occurs expect large swings on all major currency pairings. I would expect GBP/EUR to break 1.40 if this occurs.

If you have any currency requirements I would be happy to assist on your trade. I can guarantee to beat any rate of exchange from any competitor. If you would like to get in touch pleased o not hesitate to get in touch by calling 01494 787 478 or e-mail me at [email protected] .