The Euro has fallen against the US Dollar to its lowest level in 6 months but has remained in a fairly tight range against the Pound.
The US Dollar has improved as the tensions between China and the US in terms of the trade wars appear to be easing. Indeed, GBPUSD rates are also close to their lowest level since December 2017 which highlights that it’s more to do with Dollar strength rather than Euro weakness.
As highlighted in my previous article there are a huge number of economic data releases due out for the UK including Inflation Report Hearings due out in the morning.
Inflation has been a very hot topic for the Bank of England recently and one of their main remits is to keep inflation under control. Therefore, if tomorrow we see that inflation is still too high then this could potentially cause the Pound to improve as this will provide evidence to support an interest rate hike in the UK in the future.
Clearly the Bank of England will not be raising interest rates any time soon after the decision to keep interest rates on hold earlier this month but we could see some support for a future rate hike later this year and this could see GBPEUR rates going in an upwards direction.
However, it is Wednesday that could cause the biggest movement for the Pound vs the Euro as the latest Consumer Price Index is due out for April with predictions for 2.3% so anything higher could see Sterling strength.
Therefore, if you’re in the process of buying Euros in the near future it may be worth holding out until later on in the week.
If you would like to save money when buying or selling Euros compared to using your own bank then contact me directly for a free quote.
Having worked in the markets since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.
I look forward to hearing from you.
Tom Holian email@example.com