For people that are converting pounds into euro or euros into pounds in the upcoming weeks, you should expect an extremely volatile finish to the month.
Last week UK inflation numbers followed by the Bank of England’s interest rate decision provided strength for the pound and GBPEUR exchange rates have increased to an 8 week high!
The Bank of England have hinted that an interest rate hike could occur in the upcoming months and as early as November as they believe inflation will continue to rise. Personally I believe an interest rate is unlikely and the Bank of England have artificially improved the value of the pound in a bid to combat the high inflation levels.
This week Eurozone inflation data is set to be released Monday morning. This release is important as the European Central Bank are monitoring inflation closely at present as the hype is that the ECB could taper the quantitative easing program in the upcoming months.
Later in the week (Friday) UK Prime Minister Theresa May is set to deliver a ‘life after Brexit’ speech in Florence. EU Parliament negotiator Guy Verhofstadt has insisted the UK Prime Minister will make an “important intervention” and if this is the case GBPEUR could rise or fall dramatically.
Next Monday will be when we know who will have won the German election. Since the Brexit vote it has been heavily publicised that the EU will be reformed in the upcoming years and Germany as the powerhouse of Europe could have a major role to play. If Angela Merkel returns as the Chancellor of Germany I expect the euro to strengthen and other result could lead to substantial euro weakness.
With so many key upcoming economic events and major volatility expected, the use of limit orders in a volatile market could be the best option for clients.
The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade GBPEUR / EURGBP at rates better than other brokerages and high street banks. I would recommend sending an email with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company email@example.com. Dayle Littlejohn.
If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands!