Sterling Euro rates have taken a massive tumble during December as the British economy has started to show sings of a slowdown.
We have seen both Industrial Production figures as well as manufacturing data come out at their lowest levels for almost 4 years and my belief is that as Sterling was so high vs the single currency for the last few months this is the reason why British exports have struggled and therefore this is being proved with the recent data announcements.
Inflation for the UK still remains a problem and with the Bank of England already having confirmed no interest rate rise until at least 2017 we could see Sterling struggle in January.
There are also increasing fears of a Brexit at some stage and the instability this is creating is causing less confidence in the Pound.
My prediction for January is further Euro strength especially if Eurozone inflation comes out better than expected on Tuesday as it will prove that the recent extension of QE by the European Central Bank is beginning to work.
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]