Sterling Euro exchange rates have been on a roller coaster ride during today’s trading session as the Bank of England have kept rates on hold with a 9-0 vote.
Although this should come as no surprise to regular readers of this site the big problems for Sterling comes in the form of low inflation as well as the fears of a Brexit looming.
During the press conference this has already caused Sterling to fall into the 1.29 levels but rebound as the markets appear to be moving in either direction depending on Mark Carney’s comments.
Clearly with inflation remaining so low this has caused the change in the voting pattern and Carney has stated that ‘rates are not going to rocket as in the past.’
The global slowdown is weighing heavily on the British economy and with oil prices struggling to get much past US$30 per barrel the UK is struggling as the North Seal oil industry needs the figure to be close to US$60 to turn a profit.
Next week I expect the Pound to remain under pressure with the release of UK Trade Balance on Tuesday and Manufacturing and Industrial production data on Wednesday.
My forecast for next week is for Sterling to continue to struggle vs the Euro creating some good opportunities to sell Euros into Sterling.
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]