With both the Bank of England the ECB due to meet on Thursday this week all eyes will be on the decision as to whether there will be any change in interest rates. Typically during December it is unlikely that any major change in policy will take place so I believe there will be no change to the current interest rates. However, more importantly could we see the Bank of England go through another round of Quantitative Easing? If so I would expect to see some movement on Sterling exchange rates so if you have a currency requirement to sell Euros you may wish to consider organizing this on a forward contract to protect yourself from the instability surrounding the decisions.
Indeed, with one member of the MPC last month voting for further QE there is an outside chance that there could be some movement. Recently there have been signs that the Eurozone may be entering a double-dip recession so it is unlikely there will be any change for European interest rates.
With GBPEUR exchange rates the lowest in a few months could this be a signal that the UK could enter another period of discontent? Contact me directly by email Tom Holian email@example.com