GBP/EUR is on the edge of a drop into the 1.20’s as we await the UK Gross Domestic Product (GDP) figures for Q4. These are expected to show a Year on Year drop but an increase from Quarter 3, if the figures are lower than predicted this could cause a drop in sterling strength. Furthermore tomorrow will see the EU reveal the Consumer Price Index for January which is expected to show an improvement from previous months. Essentially there is a strong chance of a low week end for the GBP/EUR rate.
It is worth considering that from the very start of next week there are figures from the UK that might create a generally negative outlook. On Thursday there will be a vote by the Bank of England that will almost definitely keep the same opinion on interest rates, further emphasising that the UK economy is not in a majorly strong position.
Whilst the GBP/EUR seems a low rate compared to the highs we saw only a few months ago in the summer of 2015, this might be in my opinion one of the last times we see consistent 1.30’s. On the flip side, buying Sterling with Euro’s is at one of the best times. If you are looking to complete a transaction in the short term, this week and next are arguably going to present the best opportunities we’ve seen in a while.
Please contact me if you would like to find out any further information regarding the GBP/EUR. I am happy to provide you with information that will allow you to make the most informed decision when changing currencies. No matter how small the transaction there is always money to be saved by making a well-timed and educated decision. If you would like to get in touch please contact me Ben Fletcher at [email protected] and hopefully I can be off assistance to you.