Sterling/Euro rates continue to perform very well indeed, and are only just below the best they have been in 8 years. As you can see from the chart below, the rate remains supported above the €1.40 mark, and were given a boost yesterday by some decent UK Jobs figures. Here's how GBP/EUR has moved so far this week:
UK Jobs data keeps the Pound supported
UK unemployment is now at its lowest in 8 years, and this is why the Pound continues to perform well. Figures yesterday showed that the number of people out of work fell by over 100,000 in the last few months, bringing the figure the lowest it's been since 2008. The strong Pound reflects the strong jobs numbers, and that's why GBP/EUR rates are doing so well.
It's only briefly been higher than now back in the summer, and even then the spike was short lived. Within 2 months the rate had dropped off by 7%. There is no way to predict exchange rate movements of course, but given the Bank of England recent said interest rates aren't going to rise for possibly 2 more years, it's hard to see where any further gains will come from. Those with Euros to buy should consider their options now while the rate is at a near 8 year high.
This morning the European Central Bank president hinted that they might extend their QE programme next month, but even this only caused a short term spike in rates. So in the absence of any further information to move the rate upwards, we could well be at a peak.
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Labels: Bank of England, Better exchange rates, Currency, Euro, FX Forecast, GBP/EUR 8 year high, Interest Rates, Pound, Sterling, UK Jobs data