If you’re looking to either buy or sell Euros over the next few days then tonight’s FOMC minutes published in the US will be key to the short term trend for what may happen with Sterling Euro exchange rates.
Sterling vs Euro has fallen by as much as 7 cents since the start of December after the ECB decided to extend the QE programme by 6 months and it appears that it will be policy changes made by central banks that could be the key influence in exchange rates for 2016.
The Bank of England has already confirmed that interest rates will not be increased during 2016 and with the US likely to increase rates by 3 perhaps 4 times this year then we’re expecting to see Dollar strength which is likely to cause big volatility for exchange rates this year.
The other potential problem for the Pound is the issue of a Brexit which although is unlikely to happen until towards the end of the year could cause big negative movements for Sterling as it starts to make headlines.
When we had both the Scottish referendum and the UK general election this caused big movements for Sterling Euro which moved on both occasions by 5 cents in a very short period of time.
In the short term the Eurozone releases unemployment data in the morning and with unemployment having fallen over the last few months I expect this trend to continue leading to Euro strength creating some good opportunities to sell Euros towards the end of 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]
Alternatively call me directly on 01494787478 and ask for me personally…