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GBP/EUR best exchange rates – Last day before UK interest rate decision (Steve Eakins)
It’s that time of the month again where markets await a host of data to be released concerning the UK economy. GBP/EUR exchange rates will be moving around rapidly at 11am GMT with the announcement of the Bank of England interest rate decision, as well as their accompanying monetary policy statement moving forward into November.
Arguably, since the financial crisis of 2007/8 when interest rates bottomed out, the largest single determinant of a currency’s value is its timeline to raise interest rates once more. So far this has still not happened in a major western economy.
It’s rare that such a significant event on the currency markets has become so predictable. The release of this data has caused sudden Sterling weakness consecutively on the first Thursday of each month since August, with Sterling falling by a minimum of two cents against the single currency each time.
The BoE are currently in a bind. While the UK economy is performing well, but due to their anxious attitudes towards UK inflation (which is at its lowest levels since records began) and the global slowdown caused by a worsening situation in China, they are reluctant to pursue a rate hike in case it damages UK growth. Analysts are now expecting the earliest date for a UK rate hike to be September of next year.
This is why Sterling, and by extension GBP/EUR exchange rates, suffer with this repeated news indicating hike delays.
The global landscape itself has not changed much since their last meeting in October, which is why a correction on Sterling’s recent gains against the Euro is expected.
Overnight a further boost for Euro buyers ahead of the decision tomorrow occurred, with news that the investigation into the VW scandal will now encompass all petrol-powered cars as well. With almost a million further cars expected to be recalled, the German automotive industry has been dealt another blow and the Euro weakened by another half a cent. GBP/EUR is now marginally above 1.41 as I write this article.
This movement overnight is a gift for Euro buyers when rates were already beginning to tick down yesterday as markets begin to price in the events of tomorrow.
I strongly recommend that anyone with Euros to buy between now and the first few months of 2016 should contact me on 01494 787 478 and ask the reception for Steve discuss how these currently high buying levels, the best now since July, can be pegged to secure an extremely high buying price and avoid expensive moves against your favour. I have never had a problem beating exchange rates offered elsewhere.
It is also important to note that rates of exchange did drop to the lowest levels since February following the same data release last month so being proactive will likely save many buyers significant sums on their GBP/EUR transfer.
Source: http://www.poundsterlingforecast.com/2015/11/04/gbpeur-best-exchange-rates-last-day-before-uk-interest-rate-decision-steve-eakins/
