The pound to Euro exchange rate endured a volatile week last week, falling on Tuesday because of the negative oil prices, which saw some larger movements in the currency market generally and on GBPEUR. Other than this movement which saw GBPEUR interbank rates drop 1.47%, from 1.1453 on the interbank rate down to 1.1286, the range throughout April has been really between 1.13 and 1.15 for most of the month.
This is fairly limited when we consider that the range since February 19th to now has been from a high of 1.2045, right down to 1.0533 on the 19th March, again on the interbank rate. This is a two-month high to low movement of 14%, which perhaps makes the 2.6% movement high to low this month less significant.
Anyone interested in rebuying Euros with pounds at 1.20 or selling Euros for pounds at 1.0533 might do well to get in touch with us for a detailed explanation of the conditions that led the market to those levels, and the different conditions in the market we are now experiencing.
GBPEUR is receiving a different kind of attention to those spots, with the market very focused on the overall global economic outlook and how it affects individual countries as well as the domestic data. Financial markets whilst focused on economic data and news, are also conscious of other new political details, particularly within the Eurozone and their economic outlook, relating to the future of the European Union and the Eurozone.
Next Week Are Some Key Events to Potentially Move the Market on GBPEUR Levels
Next week are some key economic events to potentially move levels with Eurozone GDP and also GDP for the United States. The US dollar is a key factor for GBPEUR rates since the US dollar is the world’s most heavily traded currency.
Therefore, movements on the US dollar which influence both GBPUSD and EURUSD both affect GBPEUR. As EURUSD moves higher and lower, it can weigh the Euro down against the pound. And as GBPUSD moves higher lower (because of a stronger or weaker dollar) it can drag the pound down against the Euro.
GBPEUR movements have been more settled compared to the previous excessive volatility we have seen but next weeks’ news with the latest GDP data for the Eurozone could reignite many of the underlying concerns we know exist in both Europe and the global economy at present.
If you have a transfer to buy or sell pounds or US dollars and wish to better understand future events that might change exchanges rates, please do get in touch directly with me to discuss further.