Since the start of December and the extension of QE by the European Central Bank we have seen Sterling Euro exchange rates drop by almost 10 cents from the high to low.
With fears of a Brexit referendum and the Bank of England stating at the end of last year that UK interest rates will not rise until 2017 confidence in the Pound has dramatically fallen.
The US economy confirmed 292,000 new jobs were created compared to the expectation of 200,000 and this has reinforced the Fed’s decision to increase interest rates recently.
Indeed, the Fed have suggested that we could be in for another 3 interest rate hikes this year which again has dented Sterling exchange rates.
Tomorrow the NIESR announces GDP data for the last 3 months and with the ONS having downgraded GDP at the end of the year I expect Sterling to experience further difficulty which could result in further Sterling weakness vs the Euro.
Good news if you’re selling Euros into Sterling but bad news if you need to buy Euros.
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 01494-787478.