After the big drop in GBP EUR rates last week following the Bank of England Quarterly Inflation Report it did look as if the pound was making some headway yesterday. However inflation figures this morning showed official figures has dropped from 1.9% to 1.6% whereas they had expected to come in at 1.8%. This lower than expected inflation figure means it is less likely the Bank of England will have to raise interest rates soon and reinforces their position from last week.
However Euro sellers beware as this spike in favour may not last indefinitely with a lot of European jobs and CPI data out next week, all of which is expected to be weak. This could put pressure on the ECB for their September meeting and see the Euro slip so if you are selling Euros I would be inclined to take advantage of current levels either on spot or forward contracts.
If you are new to currency exchange and want a better idea of how it all works, or even if you are an experienced hand and just want to get the best exchange rate, then feel free to email me, Colm, at email@example.com and I would be happy to explain how our services work.