Yesterday saw huge movements on GBP EUR rates as the Bank of England extended the Quantitative Easing program by £75bn. Sterling immediately lost ground against the single currency dropping by 1% in minutes and focus switched to the European Central Bank and Jean Claude Trichet’s last meeting as the President. There was an outside chance of an interest rate cut but this failed to materialise and the Euro held steady. Earlier in the week rates were over 1.17 and late yesterday they were closing on 1.1450. Already this morning we are approaching 1.1550 so expect continued volatility.
Euro Dollar rates will be dependant today on the outcome of non farm payroll data later this afternoon so be prepared for this, and as ever watch out for any breaking news regarding the European sovereign debt situation and Greece. If you would like more info please call +44 1494 787 465.