The pound is on the up against the Euro after Bank of England Governor Mark Carney stated yesterday at the ECB Forum in Sintra, Portugal that “some removal of monetary stimulus may become necessary”. This was a bold statement from and it would suggest that we could see a shift in policy as soon as the August meeting. We could be talking about a 0.25% interest rate increase which should help drive the pound higher if we are at a key turning point. Clients selling Euros for pounds should get their skates on and look at moving sooner rather than later.
Todays has the potential to be major market mover for sterling exchange rates. GBP EUR in particular could see a good rally once the vote on the Queens speech has gone through today. The amendment to the Queens Speech on public sector pay put forward by Labour did not go through last night and this was the first hurdle for Prime Minister Theresa May.
My view is that the pound should be able to move higher once this Queens Speech is out of the way as it should bring some much needed stability to the country. Of course if the speech was voted down then this would be a disaster for the pound with substantial losses to be expected. As things stand the vote should go through later today.
The Euro saw considerable volatility yesterday as the European Central Bank was forced to make a statement saying that the markets had misjudged Mario Draghi’s comments earlier in the week. On Tuesday the Euro made considerable gains against all of the major currencies whilst reaching its highest level against the US dollar before retreating after the statement was made.
If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]