The best exchange rates for buying Euros was 3 cents higher than the low during the course of a week highlighting how volatile GBPEUR rates have now become since December.
Global stock indices crashed during the course of the week and it wasn’t until Friday that we saw a bit of normality resume with oil prices rising by as much as 10%.
This helped Sterling to rise against the single currency during Friday’s trading providing a very short window of opportunity to buy Euros near the peak of the week.
However, next week I think we could see big risks to Sterling with the Consumer Price Index published on Tuesday morning.
The recent UK Quarterly Inflation Report suggested that the UK will not hit the 2% target until 2018 and with inflation currently at just 0.2% I don’t expect to see gains on Tuesday as oil prices have recently hit their lowest level in years.
I think this could cause Sterling to fall vs the Euro and it may be worth looking at buying Euros on a Forward Contract in order to protect yourself against any further falls for the currency pair
Thursday sees the release of the latest set of ECB minutes from the previous meeting and with ECB president Mario Draghi rather bullish in recent weeks I thin we could see the Euro have a strong finish to next 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]