The Pound has gained value over the Euro this week which has resulted in the GBP/EUR pair touching 1.20 for just the second time in around 5 months.
The main reason for the Euro’s weakness is that the Fed Reserve Bank in the US has decided to hike interest rates for just the second time in 2 years, and has also outlined a plan to hike rates a further 3 times this year.
This has created demand for the Dollar and the Euro has been the biggest loser as investors have begun moving their deposits into Dollars due to the expected higher rate of return.
It’s also worth noting that the European Central Bank intends to keep rates low within the Eurozone which has added pressure onto the Euro.
With the above being said, it appears that 1.20 is acting as a psychological level for the GBP/EUR pair as it’s struggling to break above that level. Those planning on converting Pounds into Euros may wish to take advantage of the current 4-5 months highs as after such a short term yet steep rise the Pound could be fragile around it’s current levels.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in contact with me on email@example.com in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.