Today the GBP/EUR rate has gained a cent and a half from yesterdays low, showing the biggest improvement for Sterling in a day for since the beginning of July. The Pound has been under constant pressure from a performing Euro which appears to have come under very little pressure, with Eurozone financial leaders very optimistic for the near future.
Tomorrow there could be another volatile days as we see the latest inflation data being released for the Eurozone in the form of Consumer Price Index. There has been talks that there could be a interest rate coming in the Eurozone however unless there was a major change in the data it could be for a few years. There is expected to be major announcement regarding the ECB’s upcoming plans in September but a good reading tomorrow could see the Euro make back today’s lost ground.
In my opinion over the next few weeks we may see the GBP/EUR rate move back into the 1.09’s maybe even pushing 1.10, however until there is clarity on Brexit I find it hard to see much more. There is still so much uncertainty as to how negotiations will unfold and until the next update which could be on the weekend, the markets will wait in expectation. If you’re looking to sell Euros to Sterling then now might be the time to do so, the GBP/EUR rate has moved of the lows and it may not move back.
If you do have a question with regards to my forecast please get in touch. When you come to moving large sums of money a movement of a cent can often relate to a significant difference in your returns. Helping you formulate a strategy could make sure you’re in the best position to exchange currency when the market is in your favor, please contact me at [email protected]