Will GBPEUR rise or fall on the ECB meeting?

Sterling hits highest level against the Euro since May 2017 - Great time to buy Euros

Today is a vital day for the GBPEUR pairing with the latest European Central Bank (ECB) meeting and interest rate decision released. We are waiting to hear of any news in the market which might move the GBPEUR pairing and present some better or worse levels.

GBPEUR remains in the tight range we have been operating in since the early part of 2018 which is presenting some frustration for Euro buyers but not altogether the worst news. This time last year we were on a collision course for the 1.07 level which we hit towards the end of August.

Expectations for the Pound to slide back below this level are very probable if there is further confusion over Brexit and a more bullish tone struck by the ECB. Whilst we are unlikely to see anything below 1.10 today, a more positive tone from the ECB would help the Euro get back in the positive course it was previously on.

What could be quite interesting is to see how Mario Draghi, President of the ECB, responds to the news from Donald Trump that he is aiming to avoid any Trade wars with the EU. Such concern and speculation had been a major cause of concern which had hampered the Euro of late, the improved sentiment from these Trade Wars might well feed through into the ECB’s commentary.

This expectation will be potentially realised this afternoon and could easily put a dampener on the GBPEUR pair, pushing rates back into the 1.11’s. Clients holding sterling and looking to buy Euros will find the market is not poised to deliver big improvements easily and the risk remains that levels could quickly drop on any renewed Brexit uncertainties.

If you have a transfer to consider in the future buying or selling Euros, today’s news could be very important to shape the future direction. For more information please do speak to me Jonathan Watson by calling in on 01494 725 353 emailing me at jmw@currencies.co.uk.