The pound is moving in different directions against the Euro and the US dollar with a number of factors influencing the rates. GBP EUR remains close to an 11 month high with levels sitting at 1.1450 for the pair whilst he pound has moved lower against the US dollar with levels currently sitting below 1.40 which is some way below the recent high of 1.45. Today sees an important debate in the House of Commons on whether or not Britain should remain in a Customs Union.
Whilst not binding the outcome today could signal the extent of the battle that may be in waiting when it comes to a more critical vote next month and could see some market volatility for sterling exchange rates. This is an important debate which could shape the future of Brexit, something the pound has reacted very strongly to for the last 18 months.
Today see the European Central Bank interest rate decision which is likely to have a considerable impact on the Euro and could throw up some surprises for those clients looking to buy or sell Euros. ECB President Mario Draghi will be taking questions this afternoon at the press conference and any clues offered as to when the central bank will seek to fully conclude its asset purchasing scheme and the taper will likely shape the markets.
Any suggestion that he is not yet willing to tighten policy like other central banks around the world could see the Euro come under further pressure. As a such there could be a jump higher for GBP EUR presenting a window of opportunity this afternoon for those clients looking to buy Euros. For assistance in timing an exchange for a currency transfer to hit the highs then please feel free to get in touch with me direct.
The pound is being generally supported on a brighter outlook on Brexit especially considering the second round of negotiations which covers the transitional period have now been concluded. The pound is struggling to move much higher though as uncertainty in the third and final round of negotiations continues to be of concern. Although we may see a spike for GBP EUR this afternoon in my view until real clarity is offered the pound will struggle to climb much higher beyond the recent highs we have seen.
For information on sterling exchange rates and how to make the most of any opportunities when transferring funds overseas then please feel free to email me James at [email protected]