The Pound has found a level of support against the Euro this week, following a poor run over the past couple of weeks.
GBP/EUR rates are now trading back above 1.14, which will be welcomed by any clients looking to execute a GBP/EUR currency exchange over the coming days.
It’s been well documented that the Pound has been under pressure of late. Investors quickly sold off their GBP currency position, when it became clear that the Bank of England (BoE) would not be raising interest rates at their recent policy meeting.
I do believe that the BoE and Mark Carney in particular have lost a lot of credibility and this could have an impact on Sterling’s value moving forward, which in turn could help support any increase in value for the EUR.
Looking at the GBP/EUR pair and the trend over the past 12 months has been repetitive, with the Pound seemingly finding a level of support only to be knocked back time and again.
It is unlikely that a move back towards the highs of last year, when the Pound was trading in the higher teens and one stage even seemed as if it could put pressure back on the dizzy heights of 1.20.
Fast forward and it those levels seem ambitious at best, especially when you consider that UK growth forecasts for 2018 have been cut once again to 1.4%.
Despite the current malaise, the Eurozone is not without its own problems. Political fragmentation across the region, Italy being the prime example, could potentially destabilise the Eurozone economy.
We have already seen a downturn from last year and for this reason, it still seems as though the downside risk, outweighs the upside benefits for those clients holding EUR.
If you have an upcoming Sterling currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.