In recent weeks the pound has gained momentum against the euro due to the hype surrounding a UK interest rate hike in May. Tomorrow the UK will release their latest average earnings numbers and if the consensus is correct and average earnings rise to 2.8%, I think the likelihood of an interest rate hike rises and the pound will gain momentum.
With GBPEUR exchange rates close to a year high, if we see a further spike in the market clients that are buying euros with the pound should seriously consider purchasing.
Later in the week UK and Eurozone inflation is set to be released on Thursday. UK inflation is set to fall below average earnings which is a positive however the Bank of England will keep a close eye on inflation as they will not want inflation to fall below the Bank of England’s target of 2%. Furthermore Core eurozone inflation is set to fall further due to the strength of the euro at present. Again Thursday could be another good day for the pound against the euro but my question to all clients buying euros is how far can this good run go? I believe its only a matter of time until GBPEUR falls.
If you are buying or selling euros this week, month or year and I have not covered the currency pair you are trading, I would recommend emailing me with the currency pair (EURUSD, EURGBP, EURAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you email@example.com. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to 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! **