GBP EUR Rates Head Towards 1.14

GBP EUR Looks to Employment Figures for Support

The pound has seen yet another great day making strong gains across the board including the Euro. GBP EUR exchange rates reached a high of 1.1396 earlier today before coming of the highs.

Monetary Policy Committee member Vlieghe said today that interest rates will need to rise more than once if the economic recovery develops as expected. His comments reinforced the view that the Bank of England means business in terms of raising interest rates. There has been some suggestion that there could be some jawboning going on to try and influence the exchange rate.

However I do not support this view as the benefits from such a policy seem too minimal for such a coordinated stance from the central bank.
As such the pound should be relatively well supported after what has been a seismic shift in policy from the Bank of England this week.

Clients looking to sell Euros have seen a brutal week and the question now is whether the Euro will strengthen against the pound. Those clients may wish to consider moving into sterling sooner rather than late to avoid further disappointment. A major speech from UK Prime Minister Theresa May next week could see considerable market volatility. Any improvement in the outlook in the Brexit negotiations could see sterling find additional support. However any suggestion that Britain is prepared to walk away from the negotiations could see a sharp fall for the pound. This cannot be ruled out considering that the negotiations ended badly a few weeks back.

If you would like further information on sterling or 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]