Sterling Euro exchange rates have seen a recovery over the last few days compared to the week before following Mayor of London Boris Johnson’s decision to announcement he would be joining the Leave Campaign.
Boris carries a lot of influence on voters and this saw the odds of a Brexit going up.
Clearly the referendum is causing investors to stay away from Sterling at the moment but to me I don’t think it will happen.
As yet there is not enough information being made available by either camp and the likelihood is that we’ll remain part of the EU when the referendum takes place on 23rd June.
The big news for next week will come from the Eurozone when we see the announcement of both GDP data and their next monetary policy meeting.
Eurozone GDP is released on Tuesday morning which is likely to have an impact on GBPEUR rates but arguably the biggest event will come when the ECB announces whether or not they will look at further QE on Thursday.
The rumours are that EUR10bn could be added per month in an attempt to combat falling inflation.
Eurozone inflation has been measured at 0.1% and this is a real concern for the continent.
Therefore, my expectation is for further QE rather than another rate cut by the ECB on Thursday and this could create some good opportunities to buy Euros towards the end of next week.
If you are selling Euros it may be worth organising prior to Thursday’s decision and if buying Euros then maybe delay until the end of the week.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian email@example.com