Which direction will GBPEUR take next?

Pound to euro Awaits ECB Rate Decision for the Next Path

The pound is looking better supported against all currencies and this includes the Euro which it is still nudging some of the better rates in the last 6 months against. If you wish to buy Euros with pounds the good news for sterling is not enough, the Euro is very strong and Euro buyers need some weakness on the part of the Euro get a better rate.

This morning we have the latest UK GDP (Gross Domestic Product) figures which will give us some insight into the pace of growth for the UK economy at present. Overall impressions over the outlook on the GBPEUR rate really are mixed, with both currencies benefiting from improved economic data sets.

Politically, both countries are set on uncertain courses, the UK is struggling with Brexit and many Eurozone countries are feeling political pressures. The biggest concerns stem from the Italian election next weekend, there are a number of far-right and anti-EU and anti-Euro politicians in the running for the top jobs in government.

Despite concerns politically in the Eurozone there are probably greater concerns for the UK with the fears over the worst outlook on Brexit hindering the pound. Whilst sterling is stronger lately as we get some more positive news on what the final deal will be for the UK and the EU, we do still have a long way to go for the pound to really find its feet.

If you need to buy Euros with pounds we are only 2 cents off the best rates to buy since May last year, this is a very good point to note. With GBPEUR looking like it was headed to near parity or one for one, it is very encouraging to see the rates back at this level which whilst compared to overall levels in the last few years are still low, do represent a significant improvement from the lowest points.

If you need to buy or sell Euros and wish for any information on the best timing and appropriate strategies to maximise your deal, please speak to me Jonathan Watson by emailing [email protected] to get a full overview of the upcoming events and strategy on the best rates of exchange.