GBP/EUR rates have spiked back slightly during Thursday afternoon’s trading, following the latest European Central Bank (ECB) interest rate decision and subsequent monetary policy statement. Despite interest rates being kept on hold at 0% it was the subsequent comments by ECB president Mario Draghi regarding on-going concerns about Eurozone inflation levels and their monetary policy stance, which seemed to boost Sterling’s value.
The on-going uncertainty surrounding this month’s EU referendum vote continues to unsettle investors and as such I expect the recent volatility on GBP/EUR rates to continue over the coming weeks. The Pound had made gains last week following two positive Brexit polls for the Remain camp but I always felt any Sterling strength was unlikely to be sustainable. This proved to be the case after the latest poll released in the Guardian on Tuesday, which had the Leave camp just ahead and whilst I appreciate these pre polls should not necessarily be taken at face value, they at least prove how fragile market confidence currently is.
Personally I would be looking to secure any short to medium-term GBP/EUR positions ahead of the June 23rd vote and not gamble on the outcome. Whilst any Remain vote may solidify Sterling’s position, I cannot see a major spike whilst the Bank of England (BoE) stance remains steadfast in keeping the Pound’s value under control. However, if we were to see a Leave vote then it is likely Sterling will suffer immediately and a move under 1.20 would be a distinct possibility.
If you have a GBP or EUR currency requirement and unsure of how best to secure your currency ahead of this month’s key vote, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one the team for Matt. Alternatively, please feel free to email me directly on [email protected]