The Pound fell back during yesterday morning’s trading session against the Euro falling back into the 1.13 levels on Interbank as there was no new news surrounding Brexit and it could have been caused by investors selling off their positions prior to the end of the month and the end of the first quarter.
However, the Pound has hit its best rate to buy Euros since May 2017 only recently owing to the transitional deal being reached.
The Pound also made gains after the Bank of England confirmed a 7-2 split in favour of keeping interest rates on hold which demonstrates that there is a growing appetite to raise interest rates in the UK.
At the moment it appears as though there is a chance of 75% to increase interest rates in May and this has supported Sterling exchange rates.
As we end the week UK GDP figures are due to be published on Thursday morning.
The expectation is for growth of 1.5% so if we see a revision upwards then could this be the catalyst to send GBPEUR exchange rates back above 1.15?
However, although the UK is growing it appears to not be growing at the same rate as other nations around the world. During last year Germany grew by 2.2%, France by 1.9% and the US by 2.3%.
Therefore, although this can be taken as a positive it could be argued that the UK economy is only improving owing to global growth rather than directly what is happening in the UK.
UK Mortgage Approvals are also due to be released and with the housing sector showing mixed signals this could cause GBPEUR exchanges to move.
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 (Tom Holian) on email@example.com and I will endeavour to get back to you as soon as I can.