The Euro has been under a lot of pressure recently after the European Central Bank made a number of changes to both economic policy and their growth forecasts.
The ECB has announced that it will be bringing their QE Programme to an end in December 2017 and it also cut their growth forecast for this year but kept the next two years the same.
The real problem for the Euro’s weakening is that the chances of an interest rate hike now appear to be a long way from now with some predictions that they may not hike rates until the end of 2019. The single currency has struggled since against the Dollar and fell against the Pound.
In the next hour ECB President Mario Draghi will be taking centre stage to address the markets about the recent changes. The reason why he adopts this approach is to ensure that the message remains in line with the previous meeting to ensure that no incorrect assumptions are made.
Depending on the tone of the speech this could cause further movement on GBPEUR exchange rates so make sure you’re prepared for any potential movement on rates.
For me the biggest event of the week is likely to come on Tuesday with the Bank of England due to hold their latest interest rate decision.
Previously the vote has been split 7-2 in favour of keeping rates on hold but with Retail Sales last week coming out much higher than expected could this potentially change any of the minds of the MPC?
If so, this could send GBPEUR rates upwards with 1.15 a possibility if we see a 6-3 split.
If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing from you.
Having worked for one of the UK’s longest established currency brokers since 2003 I am confident that I can make the process simple and cost effective.
Tom Holian email@example.com