Buying Euros becomes more expensive

Pound to Euro exchange rates continued to tumble yesterday due to poor UK PMI data. Exchange rates dropped 0.75% making a €200,000 purchase £1,300 more expensive. The next economic piece of information that could have a major impact on exchange rates is the Bank of England’s decision this Thursday. If the Monetary Policy Committee decide to cut rates I expect to see further falls for Pound to Euro exchange rates and therefore parity is looking more likely as some major banks have forecasted.

Is it one way traffic for GBP/EUR exchange rates?

Since the UK public decided to vote out of the EU, GBP/EUR exchange rates have dropped 20 cents and many clients have taken advantage of the 5 year highs! For clients that are prepared to wait to see if GBP/EUR exchange rates continue to fall they should keep a close eye on the ECBs Quantitative Easing program. President Mario Draghi has hinted that the Q.E. program could be extended as early as December this year. When the Q.E program was introduced in March 2015 the Euro dropped in value and I expect the same trend would follow if we see an extension.

Economic data releases that will impact Euro exchange rates for the remainder of the week

Thursday the economic bulletin which is released by the ECB every two weeks and gives guidance to the state of the European economy is to be released at 9am and Unemployment rate which is a measure of unemployed workers divided by the civilian labour force will be released at 10am. The unemployment numbers are set to fall, therefore we could see further strength for the Euro against Sterling.

With the economic indicators suggesting further falls for GBP/EUR exchange rates, if you are buying Euros before Christmas the safer approach would be to purchase your currency sooner rather than later to minimise risk. If you would like to discuss an upcoming transfer you can email me at drl@currencies.co.uk and Id be happy to assist.

News

Read more articles
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.