GBP EUR exchange rates will be very much dependant on the Bank of England Minutes due out tomorrow morning. Whilst the BofE didn’t increase their asset purchase program of Quantitative Easing this month it is unclear how close they actually came to doing so; the Minutes will reveal all as to what was discussed and the markets will use the information to forecast future bank policy and price this into the exchange rate.
As a result if following some very poor UK data some members of the Bank’s Monetary Policy Committee have pushed for an increase in QE then sterling Euro is likely to fall significantly. However should the bank remain optimistic about a slow but steady recovery in the UK then the pound may claw back some recent lost ground against the single currency. As the outcome is an unknown, and the scale of the movement in exchange rates potentially very large indeed, please do not hesitate to e-mail me for information once the news is published- email@example.com