Sterling exchange rates remain on the back foot as British uncertainties continue to drag the pound lower. The pound is making some headway this morning ahead of the UK inflation report hearings which could result in additional market movement for the pound. GBP EUR has picked up marginally after a terrible start to the week with rates for this pair sitting at 1.1088. Clients selling Euros are seeing an excellent opportunity to sell at this point and would be wise to consider loving sooner rather than later to take advantage of these higher levels.
Any suggestion that inflation will remain an issue for the British economy could still push the Bank of England towards raising interest rates. A higher projection for the future today could help support the pound although any rate hike would only realistically be expected at the end of this year or early next year.
As such any potential gains are likely to be limited considering all the other factors that Britain is faced with currently. The change in politics after the UK general election where Prime Minister Theresa May lost her working majority in the House of Commons coupled with the ongoing uncertainty surrounding Brexit are the two biggest negative drivers for the pound.
With tensions escalating at the nuclear level between the US and North Korea there may be considerable market volatility for all of the major currencies. Any attack from North Korea on the island of Guam may warrant an extreme response from the US. President Donal Trump has said overnight that any attack from North Korea would be met with fire and fury the likes have never been seen before. Both the Pound and the Euro may see considerable market movement on any developments here.
If you would like further information on Pound Euro 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]