The Pound has once again broken past 1.15 against the Euro during today’s trading session following the latest European Central Bank meeting. Interest rates were kept on hold which was no surprise and ECB president Mario Draghi suggested that the current QE programme due to end in September may be extended if necessary.
This has caused the Euro to weaken against the Pound creating some excellent opportunities to buy Euros with Pounds. The current plan is to pump €30bn per month in to the economy and as they are considering extending the programme this has seen global investors sell off their positions sending GBPEUR exchange rates in an upwards direction.
Draghi went on to suggest that issues of protectionism could cause problems for the Eurozone which have become more prominent.
Turning the focus to the UK economy the Bank of England are due to meet in the next fortnight to announce their latest monetary policy. There is a strong chance of an interest rate hike coming when the central bank meet on 10th May as average earnings have increased higher than inflation levels for the first time in a long time and with UK unemployment close to its lowest level since records began I think there is enough justification to allow for an interest rate hike.
Indeed, even if the Bank of England keep the status quo I would not be surprised to see an overall positive tone suggesting that a rate hike will be coming in the near future and this is why I think we’ll see the Pound have a strong start to next month so if you’re planning to make a property purchase in Europe then keep a close eye on the rates over the next few days.
If you would like further information or a free quote when exchanging between Pounds and Euro then contact me directly and I look forward to hearing from you.
Tom Holian email@example.com