Pound to Euro exchange rates rise due to Euro weakness

Good Morning. The Euro has weakened further this morning after a surprise move by Germany to ban the naked short-selling of shares. Analysts said Berlin's move had led to uncertainty and had added to fears for Europe's banks.

The result is a weaker Euro, and this has pushed pound to Euro rates up despite the weak pound. At 08:30 am rates are as follows:
Continued Euro Weakness
You can read more about the new ban here on the BBC site. In a nutshell, it's when investors are betting on the fall of the Euro, which in turn drives selling in the market and may cause it to fall more than necessary. After the move, the Euro hit a fresh 4 year low against the dollar.
In Tokyo, the single currency fell below $1.215 for the first time since April 2006, before recovering to $1.2202.

This Euro weakness is giving some good buying opportunities for those that need Euros. As we said in yesterdays report, the pound is still fundamentally weak, and the rise in GBP/EUR rates is only down to this weakness in the Eurozone. It may not last long, and at some point the Euro is going to bounce back. When it does, pound euro rates will fall back away again. If you want to fix the rate to protect from a fall, contact us today about a Forward contract.

Getting the best exchange rate
Whilst the natural inclination is to go to your local High Street bank to transfer funds abroad, this is usually a fairly expensive way of doing it. The commercial rates we offer at the Foremost Currency Group are up to 5% better than you can achieve at the bank. As I'm sure you appreciate, even a very small difference in the exchange rate can equate to a huge saving if you are converting a large sum of money. To see how we can help you get the best rate, get in touch today.

Today's Data
Today’s all about the UK, US and EU central banks. The BoE minutes are released today; Interest rates and Quantitative Easing will be largely ignored – what we’re looking for is further information on their view of plans to cut the UK deficit, which they touched on in a speech last week.

There’s also a speech by the ECB today and Federal Reserve today. Their comments often affect exchange rates significantly. We have further inflationary measures from the states today also, which could cause further strength for USD if above forecast.

Above all, watch for more developments with the EU situation, as this seems to be having by far the biggest impact on exchange rates at the moment.

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