Will today’s ECB meeting cause GBP/EUR to break out of its current trend?

Euro to Dollar Exchange Rate: EUR Climbs Higher Over USD as Fed Reserve Rate Cut Bets Increase

Much of the build up to today’s meeting is yet to result in movement for the pair, although once the meeting begins this afternoon I think there’s potential for price fluctuations for the GBP to EUR pair.

There was a slight uptick in the Euros value last week when European Central Bank member Praet hinted a major announcement during today’s meeting. The widely expected that there won’t be an interest rate change by the ECB this year, and I wouldn’t expect to see the ECB announce that there will be further purchasing of assets to aid the economy. This leaves open the possibility of a cutting back to its current APP (Asset Purchasing Programme) and if this is announced I’m expecting to see a boost to the Euros value.

This could push the pair outside of their current trend which has been between 1.13 to 1.15 for some time now.

Due to these hopes I also think that if there is no announcement and the markets are disappointed, we could see a Euro sell-off. It’s for this reason that some of our clients may choose to spread the risk over the announcement if they’re planning on making a large transfer between GBP/EUR.

If you would like to be notified in the event of a major move for the GBP/EUR pair, do feel free to register your interest with me.

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 (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.