Sterling rates start to fall – Bank of England Interest Rate Decision.

GBPEUR rates have been climbing of late following the appointment of Theresa May as the next PM of the UK.  This has resulted in rates climbing 5 cents in three days giving anyone with euros to buy a great opportunity.

However rates are now starting to fall as the market looks forward to the Bank of England decision tomorrow. This is their first opportunity to make any change following the result of the referendum less than three weeks ago.  It is becoming increasingly likely that they will cut interest rates for the first time in over 7 years in an effort to bolster the domestic commercial property market. Many expect this to happen which is why we are seeing rates start to fall this afternoon and why many expect this to continue tomorrow.

As a result if you have euros to buy in the next few weeks moving sooner rather than later may be wise.

Longer term we also have to keep an eye out for the potential of an election being called by our new PM.  As pressure builds following the collapse in the Labour Party it seems a real threat to the strength of the Pound moving forward as this new level of uncertainty will surely have a negative impact on the currency market.

If you would like more information on this topic and how it could impact the price of your currency transfer please feel free to get in contact with myself. My name is STEVE EAKINS and you can contact me via hse@currencies.co.uk. Look forward to hearing from you and being able to assist you with your situation.