Thursday, 3 November 2016

Pound nears €1.13 as BoE raises UK growth forecasts

In an update to my earlier post, Sterling has gained further and for the time being seems to have held on to those gains. Following this morning's ruling that parliament will have a vote on triggering Article 50, the BoE have raised their growth forecasts for the next 2 years. They also voted unanimously to keep interest rates on hold at 0.5%.


As you can see from the chart above, this has helped push the Pound higher, to around €1.1273 vs the Euro at the time of writing. This is 2 cents higher that where the rate was at the open of the London trading session, and presents good buying opportunities for those that need to convert Sterling to Euros. In Mark Carney's statement after the announcements, he said that the weak Pound and market volatility isn't based on actual facts, but rather the judgements the financial markets have made with regards to the uncertainty leaving the EU means for the UK economy. The inflation report and Carney's comments were more hawkish than many, including me, had expected, and that's the reason the Pound has risen.

I'm still of the view that it's unlikely we'll see a sustained rally for Sterling. If you need to buy Euros or indeed any international currency using the Pound, then get in touch to see what rates we can offer you. The rates we provide are much higher than banks or even other currency brokers may offer you.