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Pound to Euro rates and will the fall continue into next week? (Tom Holian)
The Pound to the Euro has continued to drop during the latter part of the week with GBPEUR rates now falling below 1.16 on the Interbank level as the Bank of England suggested that interest rates will remain on hold for a lot longer than previously expected.
The Quarterly Inflation Report confirmed that inflation is likely to fall to 2.7% from 2.8% and this has seen a big sell off for Sterling causing the Pound to weaken.
UK growth forecasts were all raised yesterday which typically would result in Sterling strength but combine the lack of any sign of an interest rate hike as well as the uncertainty surrounding the Brexit then this is what is causing Sterling’s downfall vs the single currency.
There is little economic data to speak of next week in both the UK and the Eurozone so the GBPEUR exchange rate will likely be affected by what is happening politically and as we appear no closer to triggering Article 50 then I think we’ll continue to see the Pound struggle to make any gains vs the Euro.
Longer term I think when both Holland and France go to the polls we’ll see problems ahead for the Euro but until then the Pound will continue to suffer against the Euro.
Indeed, with the controversy surrounding Fillon recently this has done nothing to negatively affect the Euro which highlights the problems facing the Sterling caused by the ongoing Brexit issues.
If you’re in the process of buying a property in France or Spain and are worried what will happen to exchange rates to buy Euros in the weeks ahead then you may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date allowing you to budget early on and remove any potential negative movements against you.
I have worked for one of the UK’s leading currency brokers and am therefore able to offer you bank beating exchange rates when buying or selling Euros so to find out more or for a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]
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Source: http://www.eurorateforecast.com/2017/02/03/pound-to-euro-rates-and-will-the-fall-continue-into-next-week-tom-holian/
