It was an action packed week with lots of economic data releases and key political events which caused another volatile week for pound vs euro exchange rates.
Wednesday was always going to be the most important day. The Federal Reserve raised interest rates however we did not see a major sell of euros to buy dollars, quite the opposite. The market waiting until the Dutch election result was in and this was when exchange rates begun to fluctuate.
The Dutch election could have had a quatastrophic impact on the value of the Euro. Geert Wilders far right party had made it clear if they had got into power they would hold a referendum in regards to EU membership and another country could have been exiting the EU. However with Wilders being pipped to the post by Mark Rutte, this was certainly a confidence boost for the Euro and EURUSD increased over 1 cent off the back of the news.
With the events on Wednesday, The UK’s interest rate decision got overlooked at the beginning of the week, however Kristin Forbes one of the nine voting members of the Monetary Policy Committee from the Bank of England surprised the market. She actually voted in favour of hiking interest rates which gave the pound a well needed boost and euro buyers received an extra cent and a half on their exchange rates.
In other news SNP leader Nicola Sturgeon confirmed she wants another Scottish referendum before the UK leaves the European Union, however Theresa May told the SNP leader now is not the time and that the countries within the UK need to stick together. Other news from the UK was that the Queen gave UK Prime Minister Theresa May approval to begin the process of leaving the EU and this story I believe is going to dicatate exchange rates for the next 4 weeks.
Theresa May is set to trigger Article 50 either this week or the next and when this occurs I expect the pound to fall further. Therefore if you need to purchase euros within the next 4 weeks I would take advantage of the boost the Bank of England provided on Thursday.
Other major economic data releases that are going to impact pound vs euro exchange rates this week are UK inflation numbers Tuesday morning, ECB non monetary policy account Wednesday morning, Janet Yellen’s (Chairwoman of the FED) speech Thursday afternoon. These releases could provide a spike in the market for euro buyers or sellers for more information on a certain release feel free to email me on the email below.
If you would like become a client of mine which means you will receive better rates than using your bank and I will provide you with regular economic data releases that could impact your exchange rates feel free to email me with the reason for your currency transfer and the best number to reach you on and I will give you a call Monday morning to discuss how I can save you as much money as possible in the future email@example.com.