GBP EUR Reaches Fresh Highs – 1.16 in Sight

GBP EUR Exchange Rate: The Week Ahead October 10th

The pound has rallied to fresh highs against the Euro with levels for the GBP EUR pair trading just below 1.16. There is currently an excellent opportunity for those clients looking to buy Euros with some of the best levels seen in the last 9 months.
The mood on Brexit is feeling considerably more optimistic and the fact that key figures from with thin the EU and notably from Germany have signalled that London will still remain the financial centre for the EU are in my view helping lend support to the pound.

Clients looking to buy Euros would be wise to consider securing at these higher levels whilst they are still available as there is still a long way to go on Brexit. The trade negotiations which will cover the future trade relationship between Britain and the EU will start next week and any noises are likely to see considerable volatility for GBP EUR. The trade element is believed to be the most difficult to reach agreement and if negotiations move forward badly then the pound is likely to fall.

The European Central Bank (ECB) next meet 26th April and there is likely to be considerable volatility around this time. The ECB should give more clarity as to when the ECB will conclude the tapering of its asset purchasing scheme and may look to signal when the first interest rate increase may happen. UK data next week however will be more pressing with the release of UK unemployment numbers as well as inflation data. Strong numbers here could help drive the pound higher although politics in my view has been lacking of late and so it should only be matter of time before the markets start reacting again to British politics.

For more information on Euro exchange rates and assistance in making transfer when either buying or selling Euros then please get in touch with me at [email protected]