Sterling vs the Euro has again hit close to a 4 month high after the announcement made by the European Central Bank that they will be extending their Quantitative Easing programme past their original deadline of March 2017.
The current plan was €80bn per month and although the amount has now been reduced to €60bn the plan has been continued which has led to the Euro weakening against the Pound towards the end of this week.
The ECB are clearly having a difficult time as Eurozone inflation is very low and the current QE progamme has not yet had the desired effect. One of the problems that the ECB has is that as they have bought some many bonds they now face the prospect of buying bonds at a loss which is why the Pound has made these gains.
The single currency has fallen close to record lows for the US Dollar and near the best rate to buy Euros since September.
The best rate we have seen for Sterling against the Euro in a while was last Monday morning when the news broke about the Italian referendum however the gains were short lived as the Pound fell owing to the Supreme Court discussions.
I think there is a potential for GBPEUR rates to break through 1.20 as there is a chance that the US Federal Reserve will increase interest rates and if that’s the case this could result in Dollar strength and Euro weakness. Good news for anyone looking to buy Euros.
Having worked in the foreign exchange markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also help you with the timing of your transfer of money.
If you need to buy or sell Euros and would like a free quote then contact me directly and I look forward to hearing from you.