GBPEUR forecast for the week ahead

With GBPEUR exchange rates fluctuating between 1.1090 and 1.0750 over the last month, many of my clients are asking whether GBPEUR exchange rates have now bottomed out and over time rates will start to improve. Well unfortunately I do not believe this will be the case and in fact I expect over the next month GBPEUR exchange rates to fluctuate between 1.06 and 1.09.

Thursday afternoon the ECB will release their latest interest rate decision and President Mario Draghi will give his insight to the market. Many economists are predicting that Mr Draghi will give further indication towards the tapering of the quantitative easing program. If this is the case I expect the GBPEUR exchange rates to fall.

Friday morning the UK are set to release their latest industrial and manufacturing numbers alongside Consumer inflation expectations.  The manufacturing numbers are set to show an improvement which should help the pounds value and inflation has been above the Bank of England’s 2% target now for some time, which again could provide strength for the pound.

For euro buyers this week, if the data releases come out as expected, I expect the best time to buy euros will be either today or tomorrow where as the best time to sell euros will be Thursday afternoon.

Longer term, it seems that Brexit negotiations are not going to plan which is a worry for sterling. Many leading economists are predicting parity and if negotiations continue down a similar path to present I think parity is not out of the question.

If I haven’t covered the currency pair you are converting feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF etc) the reason for your conversion (company invoice, buying a property) and I will email you with my forecast for the currency pair and the process of using our company [email protected].

For the readers reference the company I work for on a daily basis saves clients money on currency transfers. If you are planning a transfer and are using your bank or another brokerage, I would recommend getting in touch for a forecast and at the same time compare of exchange rates. This is free of charge and will take you a few minutes.