Will GBPEUR go back above 1.40?

GBPEUR dropped sharply yesterday as the Euro found favour on the back of the ECB’s plans to launch less QE than expected. Market had been keenly pricing in a higher chance of a large expansion of the current QE programme but this failed to materialise and rates dropped 4 cents on GBPEUR with the Euro rising some 4 cents on EURUSD. We promised a busy month on exchange rates as a result of the ECB decision yesterday and so it has been! The next big event for anyone needing to buy or sell Euros is the potential raising of interest rates by the Federal Reserve in the United States. This is important for the pound and Euro exchange rates because as the biggest currency globally, as investors buy and sell the dollar it will impact Euro and pound rates.

I would not completely rule out a return above 1.40 buyers but if you are now targetting 1.40 why didnt you buy when rates were above 1.40 for the last few weeks? Greed is a very dangerous thing on the currency markets and it would not be surprising to see the rates drop further in the future. For more information on the best time to buy or sell Euros please speak to me Jonathan on [email protected]