Mark Carney’s presence was felt yesterday as his comments rocked the currency markets. UK interest rates were kept on hold as well as Quantitative Easing so you may think why the excessive move on exchange rates. However, the press release yesterday afternoon including rhetoric that suggested increasing interest rates would be detrimental for the UK’s economic recovery. The recent surge for GBPEUR exchange rates to head towards 1.18+ have been well and truly ground to a halt at least for the time being.
If you are buying Euros shortly it may be worth securing something soon if yesterday’s trend continues. Feel free to get in touch for a quote to buy or sell Euros Tom Holian email@example.com
The Euro came under pressure itself yesterday although not necessarily against the Pound. EURUSD exchange rates hit below 1.29 and with US Non-farm payroll data due out later this afternoon expect to see GBPUSD rates break below 1.50 and EURUSD rates to fall if the data released is better than expected.
ECB President Mario Draghi has claimed that interest rates will remain low or even lower for an extended period which again could pile further pressure on the single currency. If the recovery for both the UK and Europe is to take place both parties seem to want to keep interest rates low for a long period of time and let the economy get back on track. Recent data releases for the UK have been positive and expectation for UK GDP next time are for 0.5% which could strengthen the Pound back to where it has traded recently.
If you have a currency transfer to make feel free to get in contact with me via email Tom Holian firstname.lastname@example.org