Sterling/Euro rates remain flat at around the €1.11 mark as we start a new week. This morning we had inflation and growth data from the Eurozone, however these were exactly as forecast so didn't have any effect on GBP/EUR rates. This week is an important one for Sterling, as we have 'Super Thursday' that could provide new direction for the Pound.
Bank of England 'Super Thursday' could affect GBP/EUR
It's 'Super Thursday' this week, which is when the Bank of England (BoE) releases a large amount of information that can affect the value of the Pound. We have an interest rate decision, although I think they will leave rates on hold at 0.25%. There's an outside chance of a rate cut that could weaken the Pound, but given the decent GDP and inflation numbers, I think there is no case for rates to drop further.
The BoE will also decide whether to increase their QE asset purchase programme. Also released are the minutes to the BoE decision on interest rates, and in this we will see what was discussed and how the 9 member MPC committee voted. This can provide clues on whether they may cut interest rates in the future and so is important for the Pound.
Finally, the BoE governor will give a speech in which he may well give clues as to how the BoE may act in the future with regards to QE and interest rates. In this speech he is also likely to make a statement as to whether he will step down in 2018 as the Times are reporting, or whether he will decide to serve a full 8 year term. If he does decide to quit, which is a possibility, it would likely weaken the Pound further as the markets want stability and any change in leadership in the current climate would create even more uncertainty for the UK economy.
When is the best time to convert Pounds to Euros?
As you can see from the above, it's likely to be a volatile week for GBP/EUR rates in particular. When looking to get the best exchange rates, timing is key. Exchange rates can change very quickly, and having a pro-active broker on your side to help guide you through the complex currency markets can be invaluable.
We don't just provide market reports to help clients understand what is moving exchange rates; we also provide foreign exchange services to any private individuals or businesses that are looking for the best exchange rates. As part of this service, we can discuss your requirements with a free 10 minute consultation over the phone, provide you a quote on your exchange to see how much you could save, and also provide a bespoke strategy to suit your particular requirements and timescales. In this way you can make an informed decision on when to exchange your funds and ensure you're getting the best possible exchange rate.
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