Yesterday the sterling to euro interbank exchange rate remained in a tight range, with a difference between the high and low for the day merely being 0.41%. The high of the day posted at 1.1508 and the low 1.1461.
The GBPEUR rate appears to be at level of resistance and a pivotal point at 1.15, with very little for the market to feed off of today we saw little deviation either side. As the week progresses the economic data does heat up a little with tomorrow being the key European Central Bank (ECB) interest rate decision, where we may not see a change in interest rates however other fiscal policy announcements do have the ability to cause GBPEUR to witness some higher levels of volatility.
EU Easing of Lockdown Measures Affecting Pound to Euro Rate
Asides from economic data we had news from both Spain and France regarding their plans to ease their way out of lockdown and to start their economies moving again, Spain released a plan that brings four phases and France are still aiming at bringing their first stage of easing into place on May 11th. Very interesting news for those looking to buy or sell an overseas property, there is a long way to go until we see a lot of travel between European countries, until these phases start to show that they have not led to a rise in cases of Covid-19.
There is no doubt plenty of work still to be done to get the Eurozone to unite on plans moving forward regarding the economic revival, so expect lots of squabbling and issues in the coming months regarding this, there is such a broad range of economies involved with differing financial situations. There is a real mess to untangle and it would be a surprise to see this happen without a little pressure on the value of the euro.
Brexit Deadline Approaches
In terms of the UK and sterling, Brexit is creeping back into the headlines and creating a grey cloud over the pounds head and with such a large package thrown at the UK economy, investors will be cautious of a prolonged economic hangover for the UK too. The furlough bill for June alone is expected to breach £50billion – On top of all the other costs involved and this money will eventually need to be made up somehow, so rising taxes and austerity may be on the cards in the future. However, it is important at the moment to make sure that human life is prioritised which is totally the right thing to do.
With all this in mind it does create somewhat of a lottery as to where the sterling to euro exchange rate will head next, there are arguments for a move in both directions, in these situations it is important that should you have a need for an exchange involving Pounds or Euros that you keep a close eye on market movements, as rates can change very quickly.
For more information on GBPEUR exchange rates for an upcoming currency transfer you can contact myself, Daniel Wright, directly using the form below.