Pound Euro exchange rates have hit their best levels since the start of the month after a very positive week for Sterling against a number of major currencies.
The Pound increased in value against the single currency following lower than expected Eurozone inflation data which came out at 1.1% compared to the expectation of 1.2%.
A fall in inflation means that the chances of the ECB ending their QE programme may not be coming as early as some may have expected and this was the reason why the Euro fell against the Pound breaking past 1.13 during Friday’s trading session.
Next week could be one of the most volatile weeks all year with a large number of important economic data releases for the UK.
We begin on Tuesday with the latest Consumer Price Index figures which is a measure of inflation for the UK.
Inflation has been running well above target for a long time and towards the end of last year the Bank of Engalnd raised rates in an attempt to curb high inflation.
If the figure on Tuesday confirms the expectation of 2.9% this could provide support for the Bank of England to seriously consider raising rates and with a 75% expectation for a rate hike in May this could see GBPEUR rates move in an upwards direction if my prediction is correct.
On Wednesday UK unemployment data is published as well as Average Earnings.
The jobs market is close to the strongest since records began but Average Earnings are lagging behind inflation so any gains on Tuesday could be eroded by Wednesday’s data so if you’re looking at buying Euros next week it may be worth organising this prior to Wednesday.
Arguably the biggest day of the week in terms of volatility could come on Thursday when the Bank of England meet as well as the start of the EU summit which will clearly be focused on Brexit.
Depending on the tone this is likely to cause a lot of movement for GBPEUR exchange rates so if you’re concerned as to what may happen then it may be worth trading prior to Thursday.
If you would like further information about buying or selling Euros and would like a free quote compared to using your own bank then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org