It’s been a relatively good day for the Pound against the Euro, with the pair consolidating above the 1.14 mark after struggling to breach it a few times recently.
The Pound hasn’t performed well across the board today, so I think it’s fair to say that the movement is a result of Euro weakness. The Euro is coming under pressure due to political instability in Italy. At the same time central banks are either beginning to hike rates or discussing it at least, whereas there isn’t likely to be a rate hike from the European Central Bank (ECB) this year based on their comments which is another reason for the Euro falling out of fashion.
To put the Euro weakness into perspective, against the US Dollar the currency has lost almost 4.5% in just the past month.
Although the interest rate hike from the Bank of England didn’t go ahead last week, there are still economists predicting a rate hike later this year which is offering the Pound support.
In regards to the rate I think that there is support at 1.13 in the current market, but it’s going to take some special news to push the pair into new 2018 territory.
There isn’t much economic data out for the remainder of the week that could impact rates, which gives any of our readers planning their transfer next week plenty of time to plan it.
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.