Not good news for those looking to convert Sterling to Euros I’m afraid. The decline in the GBP/EUR rate has continued today, as you can see from today’s chart:
The reason for the continued fall today was further strength in the Euro. This was caused by the European Central Bank (ECB) saying that Eurozone’s recovery is set to "broaden and strengthen", as it raised its inflation projections for 2015. ECB president Mario Draghi's comments came in a press conference earlier today.
This is good news for the EU economy, and strengthened the single currency causing it to become more expensive to buy. The next thing that could affect the rate will be whether Greece makes it's first debt payment on Friday. If they do, then expect the rate to fall further. If they don't then it may recover slightly, but I can't see it getting back to €1.40 any time soon.
What effect did this have on Pound/Euro exchange rates?
The effect on the GBP/EUR rate was for it to drop from €1.3775 to €1.36. This is a far cry from the levels of €1.41 we saw just a week ago, and really demonstrates how quickly exchange rates can change. To put this into real terms, a client purchasing €250,000.00 today has to pay £6500.00 more for the same amount of currency compared to a week ago.
Fluctuations in the exchange rate can make a big difference to the cost of buying currency, which is why it’s wise to use a specialist broker like myself rather than the bank. I can not only help you to achieve much better rates of exchange, but also help with tools such as ‘Stop Loss’ orders that limits any negative effect of the exchange rate dropping.
If you need to buy or sell Euros or indeed any international currency, then get in touch with me for a free quote and more information about the services I can provide. I will get back to you personally within 24 hours to discuss your requirements and give you a free consultation on the different options you can consider. I look forward to hearing from you.