During September the rate to buy Euros with Pounds increased by up to 6% at one point after the Bank of England suggested that an interest rate hike may be coming sooner than many previously had expected.
This caused confidence in Sterling to rise dramatically but since then the Pound has struggled to hold on to last month’s gains.
One of the main responsibilities of the Bank of England is to control inflation and also promote economic growth.
With UK inflation earlier this week hitting 3% this has put a lot of pressure on the central bank to seriously consider an interest rate hike on 2nd November.
However, also this week UK Average Earnings were published and there is a clear disparity between wages and inflation.
Therefore, although a rate hike could bring down inflation it could also cause big problems for the British economy. If a rate hike does occur this will increase borrowing costs including mortgages and therefore cause a problem for consumer spending for the UK.
We already saw this with UK Retail Sales which on Thursday showed their biggest fall in over 4 years highlighting the problems that the UK is facing.
With such uncertainty this is part of the reason why even if we do see a rate hike it may not have the desired effect that many think it may have so if you’re considering making a currency transfer then it would be worth keeping a close eye out on what may happen over the next fortnight.
At the same time the Brexit talks are still no further on and this is why Sterling Euro exchange rates are remaining under enormous pressure with little positive news coming from the discussions.
Having worked in the foreign exchange industry since 2003 I am confident that not only can I offer you bank beating exchange rates when buying or selling Euros but also help you make a more informed decision.
For a free quote when buying or selling Euros then contact me directly with a brief email outlining your requirements and I look forward to hearing from you.
Tom Holian [email protected]