The Pound to Euro exchange rate has retained its recent gains, leaving the pair comfortably trading at an 11-month high after the rate breached 1.15 recently.
Previously 1.15 had acted as a resistance level but once the Pound surged through it, it has since managed to hold onto the gains resulting in a more positive outlook for the Pound moving forward.
The reasons behind the recent gains can be attributed to the UK and EU negotiators coming to an agreement regarding the Brexit transitional deal. At the same time there is a very high probability that the Bank of England will hike interest rates next month, after the BoE has alluded to this move a number of times. The European Central Banks bearish comments regarding the negative impact of high inflation in the Eurozone has also helped push the Pound higher, leaving the pair sitting just below 1.16 at the time of writing.
Later this morning there is an important data release. UK Wage Growth will be released at 9.30am and its expected to surpass UK inflation levels for the first time since January 2017. If the release doesn’t disappoint I expect to see the rate hike next month from the BoE firmed up and I wouldn’t be surprised to see the Pound climb and perhaps breach the 1.16 mark.
If you’re planning on making a currency exchange involving the Pound and the Euro, do feel free to register your interest with me, as we’re able to react quickly to market movements and help out clients.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on firstname.lastname@example.org and I will endeavour to get back to you as soon as I can.