As you can see from the chart below, GBP/EUR rates have edged lower throughout today. I pointed out in my last post that despite a slight gain for the Pound, significant downside risks remain, and that has pushed the Pound lower:
Why has the Pound fallen against the Euro?
To understand why the Pound has fallen against the Euro, you first need to look at why it's risen 5% since last month. This is due to a little more positivity about the Brexit negotiations, and rumours that the Bank of England would be raising interest rates next month. However the case for a November rate hike is now in doubt, with the BoE/s deputy governor today raising doubts about a move, saying that it's an open question. Markets had been pricing in a rate hike soon, but the latest comments mean it might not happen. Couple this with the continues uncertainty about Brexit, and you have the reasons that Sterling has been unable to hold on to its recent gains.
Getting the best exchange rates
Exchange rates can move quickly and without warning, and if you have a large transfer to make, the timing can save you thousands of Pounds. We can help you achieve rates of exchange very close to the true mid-market level, and we can also give you our expert opinion on which way rates may move. If you think our services could be of use or would simply like a quick quote to compare with what your bank or existing broker may be offering you, get in touch today.
Labels: Best Exchange Rates, BoE, Currency Forecasts, Effect of Brexit on Sterling, Foreign Exchange Forecast, Interest Rates