The GBP/EUR rate is currently strengthening just sitting below 1.30 this morning. There is a real potential for the rate to rise above 1.30 and with the big release next Thursday from the ECB there is a very strong chance the rate could get to 1.32/33 in the coming week. The ECB published a letter from Mario Draghi to the European Parliamentary Members which said Mr Draghi was observing the success of negative rates in other economies. This is further emphasised by the fact Mr Draghi has previously stated he will do anything possible to keep the inflation rate in Europe close to 2%.
This essentially opens the window to the ECB taking action rather than just leaving the economy to run itself. If Quantitative Easing is the solution this will see the Euro weaken significantly therefore if that decision is made on the 10th March there could be a great opportunity to buy Euros.
However this window will not be around for a long period of time because as we move closer to the referendum, Sterling will weaken due to the uncertainty of the Brexit vote. Therefore if you are looking to purchase Euros in the coming months please get in touch and we can discuss what your best options might be in the near future. Please email me at [email protected].