GBP/EUR rates take a hit following numerous Bank of England announcements! (Jonathan Worrall)

Pound to Euro Rate: GBP Falls on Virus Fears and Manufacturing Data as EUR Rallies

GBP/EUR rates fell rather dramatically on what was being called ‘Super Thursday’ yesterday, plummeting from 1.313 down over a cent to 1.30. There was a whole host of UK economic data announcements that helped to cause that drop.

The Bank of England (BOE) released their Quarterly Inflation Report, which showed the bank had cut its economic growth forecast for the UK from 2.5% to 2.2%. This was always going to be quite likely in my opinion, as a whole multitude of other UK economic data that has been released in the last few months had not been painting the brightest picture of the UK economy.

With UK inflation still sat just above zero at 0.2%, attributed in part to oil and other commodity prices being extremely low, it was not surprising that the Monetary Policy Committee (MPC) decided to keep UK interest rates on hold at 0.5%. What was slightly surprising however was the fact that the nine MPC members voted unanimously to keep rates the same, unlike previous votes where one of the members had been calling for a rate hike.
This had the knock on effect of lessening the confidence of investors in the Pound, and thus we saw the drop in the GBP/EUR exchange mentioned above, making a Euro purchase more expensive.
We’ve seen today just how quickly and significantly exchange rates can change in such a small matter of time, and even on days when we do not see such major announcements, it is critical that you are in contact with a broker who can help you carry out your trade in the most beneficial and efficient/timely manner.
Please do not hesitate to get in touch with me at [email protected] and either myself or one of my colleagues can assist you with your transaction. We pride ourselves on being able to give you award winning exchange rates that are generally better than what your bank or other brokers may be able to offer, alongside outstanding service.
If you wish to find out more, either about our service or the latest and upcoming market news and how that may affect your currency purchase, do email me at [email protected] and I will take pleasure in responding to you. Jonathan Worrall