The pound has been rising against the Euro for various reasons but just lately we have seen it slide as we see a quick turnaround in events. The key issue has been the volatility of the Eurozone, this has all centred around the Italian uncertainty as markets try to digest what exactly will happen next. One moment we have been bracing ourselves for the worst, the next the markets settle as investors feel everything will be okay.
The month of June opens up a whole host of opportunity as we see some key decisions for the Bank of England and also the European Central Bank. Both central banks have been key movers of the currency market as investors try to second-guess the next stages of economic policies for these two key global economies.
Personally, I feel there are more reasons for positivity than negativity from the pound. This is ultimately due to the changes in the outlook we could see for interest rates and also for Brexit. It does look like on both issues we will soon see some big changes in the overall outlook in the future which lead to sterling finding some form.
The Euro to me looks likely to come under pressure and not just from the Italian situations. I think this will be largely down to the changes we may see in their economic situation, namely a lack of any interest rate hike and also a potential extension of the QE program.
If you have a transfer to consider in the coming months the rates will not just move in a straight line but could be rather choppy, gently driving higher. The potential for the pound to drop significantly looks less likely to me so if you wish to look at any transfers please don’t hesitate to get in touch to discuss the market and all of your options when transferring money internationally.
Thank you for reading and please don’t hesitate to contact me with any questions on the markets or the best strategies in the future, please email myself Jonathan Watson on [email protected].
Thank you for any questions and I look forward to hearing from you.