Despite dropping in value recently the Pound appears to have found support at 1.14 against the Euro.
The pair have dropped from their 11-month high last week where they almost hit 1.16. Since then Sterling has come under pressure after the release of some less than impressive Retail Sales figures along with UK inflation and wage growth coming out lower than expected.
Those hoping for a stronger Pound were also left disappointed last week when Mark Carney, the governor of the Bank of England (BoE), failed to confirm the anticipated rate hike next month and commented that he would rather not focus on when exactly the hike will happen.
There are economists that believe there will actually be two interest rate hikes from the BoE this year, mostly owing to the strong jobs market along with improving wage growth. Wage growth has previously lagged quite considerably behind inflation, but that is no longer the case and therefore a rate hike is now justified according to some.
This Thursday there will be an European Central Bank meeting where the market are likely to pay close attention to the comments of Mario Draghi, the ECB President. Although no interest rate changes are expected until next year, the market will be listening closely for any comments regarding inflation levels within the Eurozone. Inflation has failed to pick up in the region and it may delay the reigning in of the current asset purchasing program.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on firstname.lastname@example.org and I will endeavour to get back to you as soon as I can.