Pound to Euro rates are still really struggling at present with investors keenly awaiting decisions on Bank of England Interest Rates tomorrow and of course the Federal Reserve in the US tonight. Today’s budget has done little on the markets, this is often the case where the budget is concerned as many of the stories are leaked early. It is fair to say the rates have not risen which is perhaps attributable to the fact this news is essentially underscoring what we already know, ie the pound is not a currency investors really want to be holding at the moment!
This is of course explained by the EU referendum in 3 months time, investors do not want to be holding a currency which is highly likely to lose value in the future. I am personally predicting a’Remain’ vote but we will need to factor in the possibility of the ‘Lave’ vote succeeding, this is of course what the markets have been doing.
The outlook on the foreign exchange market is now leaning towards GBP weakness although of course there will be spikes to help out clients buying Euros. If you have a transfer to consider please contact me Jonathan by emailing [email protected]