Its been another bad day for the pound vs the euro as the chances of an interest rate hike in May has now diminished. Lloyds bank are now predicting that there is 20% chance of a hike next month and it was only 2 weeks ago Lloyds and many other forecasters were suggesting 80-85%.
The chances have diminished as last months UK retail sales, inflation and GDP numbers all showed a major contraction which has consequently put pressure on the pound. Furthermore Consumer credit fell a six year low and UK manufacturing dropped to a 17 month low yesterday.
The only saving grace for euro buyers using sterling, is that the US dollar has made considerable gains over the last week as 10 year bond yields have reached 3%, which means we have seen a major sell off of euros to buy US dollars. Nevertheless GBPEUR exchange rates have dropped from the 1.16s to 1.13s.
With UK economic data putting pressure on the pound and the Brexit negotiations heating up, i’m not surprised to see the pound under pressure and falling once more. For clients that are buying euros with pounds, discussing your options now may be wise as it looks like the pound could fall further in the upcoming weeks.
The next economic data releases to look out for is European GDP numbers and unemployment rate tomorrow morning and Consumer Price index tomorrow morning.
The currency company I work enables me to achieve better rates than the high street banks whilst providing clients with economic data which helps them to time their currency transfer. If you are purchasing a property abroad / have sold a property abroad and would like to repatriate your currency, a business owner and needs to buy and sell GBPEUR for stock or just have a one off currency requirement feel free to email me on firstname.lastname@example.org.