GBP EUR Pushes Higher – Rates Over 1.13

Rates for GBP EUR has seen a choppy start to the New Year although the pound has started to make some inroads against the Euro with levels having broken through 1.13 again taking us closer to the highs seen at the end of 2017. There is still an excellent opportunity to sell Euros for pounds although the mood with Brexit whilst still uncertain is starting to look slightly more optimistic. Clients needing to sell Euros may be well placed to take the risk out of the markets and take the attractive levels currently available.

EUR USD has reached a three year high presenting an excellent opportunity for those clients looking to sell Euros and buy dollars. With these king of levels suddenly becoming available it may be wise to take advantage of them whilst the markets are still in your favour. EU inflation released yesterday held firm at 1.4% yesterday and eyes now look forward to the European Central Bank (ECB) meeting next week to see if any changes to monetary policy are made. With tapering well under way at the ECB it will only be a matter of time before the central bank starts to consider an interest rate hike. This would likely have the effect of strengthening the Euro but we still should have some way to go before this happens.

Data is light for the UK as we end the week although UK retail sales numbers could result in some market reaction for sterling exchange rates. The figures for December comprise of the Christmas period and will provide a good indicator of the strength of the high street during one of the busiest periods in the year. A strong number is expected and anything above that could help lend additional support for the pound against the Euro.

Expect more volatility for GBP EUR as the Brexit negotiations continue to dominate the headlines with the second round of negotiations about to start shortly. This round will centre on the delicate and complex issue of future trade and depending on early outcomes the pound is likely to see considerable volatility against the Euro.

To discuss your requirement and how we can assist with the transfer and how to maximise on the rates of exchange as they become available then please feel free to email me at jll@currencies.co.uk