EUR to GBP Exchange Rates ahead of Bank of England Meeting

EUR to GBP Heads for Key Support Level

EUR vs GBP exchange rates continue on the corona rollercoaster. Rates for GBP to EUR rallied from a low of 1.0780 to a high of 1.1042 before dropping in late afternoon trade in unpredictable trading.

The Spanish death toll of coronavirus has risen to 738 taking the toll higher than that of China as Spain struggles to contain the virus. Italy still has the highest number of deaths in total with 3,434 fatalities and it remains to be seen whether the government will be able to slow the spread of the virus. The Eurozone has much to battle with at present having struggled with low inflation and weak economic growth for such a long period. The US China trade war, issues with the automobile sector, Brexit and now coronavirus is a very large list that the Eurozone must contend with.

The government is expected to make an announcement in the coming days to give support to those who are self-employed. The markets are reacting strongly to decisions made by government and central banks so any announcement could see some market volatility.

The Bank of England meet today although it is unlikely to make any change to interest rates after it’s recent response to the coronavirus. The minutes of the MPC meeting as well as last weeks special meeting will be published. Any further guidance form Mark Carney and how the central bank intends to ensure the stability of the British economy is likely to impact on the price of sterling today. A change of direction in policy or more likely further measures introduced to support banks and businesses could help support the pound. Those looking to buy or sell Euros would be wise to get in touch to consider all the options available in these uncertain times.

Meanwhile in the UK, the conversation of Brexit has lessened in recent weeks for obvious reasons. However, some pressure has been rising from the British logistics industry which is battling to transport food in these uncertain times. The industry is proposing that Brexit be delayed and is asking the government to delay the planned departure date currently set for the end of 2020.

UK retail sales data for February arrived slightly weaker than expected although were largely unaffected by the coronavirus. The March figure however will almost certainly paint a different picture of the British economy.

If you’d like to discuss these factors and how they could impact an upcoming currency transfer, feel free to get in touch with me, James Lovick, using the form below.