This morning UK Inflation numbers were released showing a number of 2.7% against a forecast of 2.5%. The higher number increases the chance of the Bank of England raising interest rates this year.
While they are unlikely to do so this week, I think several members of the MPC will now be voting to do so.
GBP/EUR rates have now risen 3% in the last week, as you can see from the chart below:
If you need to convert Pounds to Euros, this is a welcome development. Converting £200k to Euros is netting you €7000.00 more than a few weeks ago. If you are looking to make a transfer and want to take advantage of these gains, then get in touch for a free quote.
What else could affect Sterling exchange rates this week?
On Wednesday, the UK releases it's latest Employment and Earnings data. The Average earnings numbers will be the most important for the Pound, as if these continue to rise closer to the inflation number, then it's more likely UK interest rates will rise, which may help the Pound.
Thursday is important too, as we have the latest Bank of England meeting on interest rates. While it's likely they will be left on hold again, the minutes and press conference will be interesting to see how many members voted for a rise. I think if 2 or more did, then the Pound may push higher. Any comments or hints in the press conference as to when rates may rise will also affect Sterling, as the prospect of higher interest rates usually strengthens a currency due to the higher return on offer.
Elsewhere, EU Industrial production and Employment numbers on Thursday could affect the price of the single currency.
Looking for the best exchange rates?
If you need to convert Pounds to Euros, or convert a foreign currency back to Sterling, then we can help you achieve fantastic rates of exchange. Even if you are already using a currency broker, you may find that we could save you thousands of Pounds. To get a free quote, click here.
Labels: Best Exchange Rates, Currency, EURGBP, Euro, GBPEUR, Pound, Sterling, Will the Pound go back up against the Euro