Sterling Edges Higher on Referendum Polls

Pound to euro Awaits ECB Rate Decision for the Next Path

The pound has continued its run of steady but gradual gains this week with levels for GBP EUR looking considerably better. The mood is also more optimistic with recent polls surrounding the referendum putting the remain campaign marginally ahead.

The trip from US President Barack Obama and associated press conference with David Cameron tomorrow is also expected to carry with it a currency impact. The president is widely believed to state his views that Britain should remain in the EU. Such a voice could bring with it some needed support for the pound and hence there is a good chance sterling may see a short term boost during his visit.

Today has seen the key European Central Bank (ECB) meeting and press conference with no real market reaction after interest rates were held at record lows despite new pressure from Germany. ECB President Mario Draghi is unlikely to take further action going forward considering the strong medicine he applied at the last meeting. He may however be slightly concerned with some of the recent strength of the Euro and may become slightly more dovish in his tone going forward.

For the moment the combination of the better outlook for the remain campaign and possibly some positive noises from US President Barack Obama at the press conference with David Cameron tomorrow may present buyers of Euros with a good short term opportunity. It is worth highlighting that we are only in the first week of campaigning in this referendum with much more volatility expected to come so any short term spikes to be taken advantage are likely to be short lived.

If you have an upcoming GBP or EUR currency requirement either buying or selling and would like to be kept up to date with key market movements, or simply wish to compare our award winning exchange rates then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively you can email me directly at [email protected]