Pound to Euro rate hits 3 month high
The pound to euro exchange rate has continued to strengthen hitting the best rate to buy euros with pounds since the start of June. Boris Johnson met with EU President Jean-Claude Juncker yesterday in Luxembourg and this saw the pound to euro rate hit 1.13. Johnson confirmed that talks between the UK and the European Union will now increase. He also claimed that he is committed to keep the Brexit deadline for the 31st October. According to the two they have agreed that talks will continue every day in order to reach some kind of resolution.
At the moment the EU Withdrawal Bill still does not yet have the backing of parliament. Therefore, Johnson will have to propose some agreeable differences for it to be ratified both by Europe and in parliament.
Economic data to impact GBP/EUR exchange rates
Turning the focus to economic data and we have the release of August inflation data on Wednesday. The data is expected to show a release of 1.9% which is a fall from 2.1%. We also have the release of the Retail Price Index as well as Producer Price Index figures. The data will make interesting reading as it is likely to have a bearing on what will happen at the next Bank of England meeting.
On Thursday, the Bank of England will meet to discuss their latest monetary policy decision. The likelihood will be for no rate change this month. However, make sure you pay close attention to the comments for any signs that changes may be made in the future. If hints are made that an interest rate hike may be coming this could be the catalyst to send GBP/EUR rates upwards of 1.13.
If you would like a free quote when buying or selling euros then contact me directly and I look forward to hearing from you.