This morning is the final chance for Euro buyers to secure a rate of exchange on GBP/EUR before the gamble at 12pm on-wards when the UK interest rate decision and monetary policy report statement appears.
Arguably, since the 2007/8 financial crisis, the most important determinant of a currency’s value is their timeline to raise interest rates once more from these historic lows.
The past three months in a row have seen disappointing news stir up a repeated lack of confidence in Sterling. As an example, last month this same event cause GBP/EUR to fall to their worst levels since February this year.
Originally the UK was on course for a rate hike in Spring 2016, which is why GBP/EUR rates were even higher in July than we are currently seeing. Instead ‘Black Monday’ and the slowdown in China threw global growth forecasts for the next few years into doubt – causing policy makers to worry at the banking sectors ability to cope with a rate-hike when the global slowdown becomes telling on the UK economy.
Unfortunately for Euro buyers, at the same time the UK entered negative inflation for the first time since records began at around this period. This further delayed the potential for a rate hike, as normally rate cuts are necessary to encourage spending and move an economy back into positive inflation. One of the members of the Bank of England Monetary Policy Committee even hinted this may one day be necessary.
With little change in the global landscape, the fourth month in a row for a repeated slide on Sterling value is expected. It’s rare that such an important economic event in monthly calendar has become so predictable, which is why Euro buyers are moving rapidly in large waves to secure their transfer while rates are high. This is why GBP/EUR has already moved down by half a cent and is falling further as I write this article.
Yesterday’s news that the scandal over at giant car manufacturer Volkswagen has now expanded to include petrol powered cars as well as diesel caused GBP/EUR to rise by a further Cent with the Euro weakness this entailed.
These rates are now well and truly gift-wrapped with the poor news for the Euro, ahead of the much more significant news today for the UK, which is once again expected to produce a negative result for Sterling’s value.
I strongly recommend that anyone with Euros to buy over the next few months should contact me on 01494 787 478 and ask the reception for Joshua to receive a competitive quote on your transfer – I have never had an issue beating the rates of exchange offered elsewhere.
These rates of exchanged can be pegged to avoid missing out on these near mutli-year highs for any future GBP/EUR requirement. firstname.lastname@example.org