GDP to influence exchange rates this week

The recent positive run for GBPEUR exchange rates came to an end last week, when UK inflation feel sharply and Governor of the Bank of England Mark Carney couldn’t confirm the prospects of an interest rate hike in May. Sterling fell from the 1.16s to the 1.14s causing concern for euro buyers. Any further commentary from the Bank of England over the next couple of weeks before the decision will have the potential to cause further fluctuations.

Other UK economic data in the form of Retail sales was another reason why the Governor failed to state a hike is just around the corner. UK GDP numbers are set to be released this week and the predictions are for a slight fall as the adverse weather conditions continue to cause a problem for the UK. If GDP falls I expect that an interest rate hike may not occur which could be a problem for euro buyers but good news for Euro sellers.

In other news the house of commons is set to meet this week to discuss the customs union. The House of lords voted in favour of remaining within the customers union, however Theresa May has made it clear that the  UK is leaving. If this story continues to escalate again this could put pressure on the pound.

For further information in regards to GBPEUR currency transfers feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **