Pound to Euro forecast: No direction from BoE’s Mark Carney

No direction from BoE's Mark Carney

In today’s Pound to Euro forecast, we’ll see how the Pound has continued to weaken against the Euro following Boris Johnson’s win yesterday, at the first round of the Conservatives’ leadership contest.

Boris Johnson won 114 votes, leaving only 200 votes remaining for the other candidates, which shows him as the clear favourite. Confirmation of the final two candidates should be known on the 20th June next week.

If there is a continuation of Pound weakness, we could see the GBP/EUR exchange rate retest the lows we saw in January. On the 2nd January 2019, the interbank exchange rate hit a low of 1.0955.

Euro predictions: Will the Bank of England look to increase interest rates?

Bank of England Governor Mark Carney spoke this afternoon, but made no mention on monetary policy ahead of next Thursday’s interest rate decision. He usually down plays the UK’s prospects and highlights the dangers of a no deal Brexit.

With the weaker economic growth data and manufacturing data we have seen more recently, it is likely that there will be no change in the interest rate. This is currently forecast at 0.75%.

With this in mind, it would not be a surprise to see the Pound continue to weaken in value in the near term and could move in value very quickly.

To discuss how I can assist and keep you abreast of market movements and economic information ahead of next weeks’ interest rate decision, please feel free to contact me directly here.

If you do not have the funds available now, we can always secure your currency on a forward contract, allowing you to secure an exchange rate today for a future payment. This requires a 10% deposit with the balance being paid on a date of your choice up to one year ahead.