The Pound Euro rate has has remained relatively positive compared to the last few weeks after the gains which came with the probability of a UK interest rate hike in November.
The latest rumours are that there is a chance of over 63% of an interest rate increase but as far as I’m concerned this would be far too early.
Inflation is currently at 2.9% and with average earnings not able to keep up this would cause a problem for UK economic growth
Therefore, I think Bank of England governor Mark Carney has been using ‘jawboning’ which effectively means talking about possibly doing something in the hope that the market reacts according to their agenda.
The Brexit negotiations are also keeping the Pound under a huge amount of pressure and we are now entering the fourth round of discussions this week.
However, until we get some clarity going forward with the talks between the UK and the European Union I think the Pound will struggle to make any serious gains vs both the Euro and the US Dollar.
At the same time however the Euro has come under pressure owing to the German election.
Although Angela Merkel won for the fourth successive time she will need to form a coalition which is likely to involve a total of three parties.
If you have a 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 protected] and I will endeavour to get back to you as soon as I can.