The pound to Euro exchange rate is now touching the best rates since May 2017 which easily begs the question can this continue? GBPEUR has touched 1.16 in what has been a very positive few weeks for the pound and some uncertainty for the Euro as investors look to the Bank of England poised to raise interest rates, whilst investors brace themselves for the ECB, European Central Bank to be less positive.
The next big piece of news tomorrow morning is Inflation data which is released at 09.30 am and this will provide further evidence on just how the UK economy is performing and whether we can expect the Bank of England to be looking to raise interest rates or not in May. To many, it seems foregone conclusion and this has helped the pound to rise to the levels that we have seen.
GBPEUR faces some more challenges next week with the latest UK economic growth data which will be the first estimate for Q1 for the UK, the snow is likely to have affected the UK economy and hence growth could be lower. Subdued growth for the UK is absolutely a concern which could derail further interest rate hikes, there is also an important ECB policy meeting next Thursday which could trigger some volatility in the markets.
If you have a transfer buying or selling the pound against the Euro then making plans in this turbulent time is very sensible to try and gauge the expected outcomes, if you wish to run through or discuss any transactions please speak to me Jonathan Watson by emailing [email protected].
Thank you for reading and I look forward to hearing from you and assisting with any transfers.