Bank of England and EU Summit to take centre stage today, could Pound to Euro rates see further falls?

GBP/EUR forecast - ECB Meeting and EU Summit to take centre stage today

There is a busy day of both political and economic updates today that could impact Pound to Euro rates depending on the day’s outcomes, with both the Bank of England interest rate decision and the EU Summit expected to take centre stage.

Pound to Euro rates drop

Pound to Euro rates has begun the day under pressure along with all other major GBP currency pairs after a speech from UK PM Theresa May last night appears to have been received quite badly, as she adopted a harsher approach at attempting to convince MP’s to vote in favour of her deal. Her position appears to be coming under pressure once again with some bookies taking bets on which month over the next few months she will be replaced.

Yesterday May requested a 3 month extension to the Brexit which may have surprised some within the markets after rumours implied that the request would be for a 1 year extension, and perhaps this is why the Pound dropped in the wake of the announcement. Today we could discover whether the extension will be accepted, as the EU Summit between all 27 leaders of the EU will take place in Brussels and Brexit is likely to be a key topic. All of the leaders must agree to the extension in order for it to be approved, so depending on the verdict we could see spikes in the Pound to Euro rate either today or later this week.

Bank of England’s interest rate decision and commentary expected today

Aside from the EU Summit there could also be market movement owing to the Bank of England’s interest rate decision and commentary scheduled for lunchtime today. No changes to the 0.75% base interest rate are expected, but the commentary afterwards could offer the Pound direction as references to future rate amendments could have an impact. There are mixed opinions as to whether the next move will be an increase or decrease so those of our readers planning GBP transfers should be aware of this uncertainty in case of any unfavourable market movements.

At the time of writing the GBP/EUR pair are trading below 1.1550 after hitting 1.18 within the past week which goes to show Sterling exchange rates are now coming under pressure once again. If you wish to be updated if there are any major price changes do feel free to register your interest with me. You send me a message directly using the form below: