GBP EUR rates have gone through 1.24 today after UK unemployment dropped to its lowest level in years at 6.6%. The news was another big boost to the pound and the Euro has been under fire ever since the ECB cut interest rates last Thursday in a move to combat low inflation and poor growth rates. With positive news coming out of the UK, the US and Australia, there seems very little reason to back the Euro at the minute so the markets have seen a big shift in AUD EUR, USD EUR and GBP EUR rates.
We have Aussie jobs figures out this evening, and a strong showing here could heap more misery on anybody moving money from Europe to Australia. With various smaller data releases out for EU countries in the next few days, I can’t see that they will give the Euro much support so this trend could continue over the week. If you are selling property in Spain or France then I would be inclined to move fairly quickly as long term forecasts for the single currency are also pretty poor.
Let’s face it the ECB may be forced to take even more action, but Australia have stopped their rate cut cycle and its base rate of interest is much higher. The RBNZ have already started hiking their interest rates and have another meeting tonight where there is a chance they could do so again. The UK look likely to hike in 2015, and even the US seems to be looking like 2015-2016. With Euro rates staying flat or possibly going lower for years, where would you look to put your money? If the answer is the Euro then sit on the single currency and wait for it to appreciate, however if the answer is any of the rest, then you may be seeing the trend the market will take over the coming years!
If you would like help to get the best exchange rate on a currency transfer then feel free to email Colm at email@example.com and I would be happy to explain how our services work and the types of contract that may suit you completely free of charge.