The Pound is now trading at its best level in over a week against the Euro with the Pound making gains vs all major currencies during the course of this afternoon.
The Euro has fallen against the Dollar after hitting a recent 3-year high and it appears as though the single currency’s positive run is coming to an end against the US Dollar and this has seen GBPEUR exchange rates go in an upwards direction.
Earlier today Bank of England member Michael Saunders has suggested that British unemployment could fall even further than many economists expect and if this happens this could potentially lead the Bank of England to look at raising interest rates towards the end of the year, which could give the Pound a boost and part of the reason for Sterling’s gains this afternoon.
Indeed, market expectations appear to have a couple of interest rate hikes coming in the next 2 years.
UK unemployment is now at its lowest level in over 40 years and if wage growth manages to hit 3% or outpace inflation then this is another justification for raising interest rates in the UK in the longer term.
The Bank of England is due to next meet on 8th February and although I do not expect any interest rate changes, the rhetoric from the meeting if positive could see Sterling move positively.
Therefore, if you’re in the process of looking to sell Euros it may be worth getting things organised in the near future.
If you have a currency transfer to make and would like a free quote compared to using your own bank or simply want to compare rates to buy or sell Euros against your current foreign exchange provider then feel free to get in touch for a free quote. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help save you money on exchange rates.
Email me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org