With less than a month to go before the European Referendum vote currency markets have already seen Sterling strength against most currencies as the “Remain” camp takes the lead in the polls with backing from big institutions such as the Bank Of England and leading banks and industry across the country. Rates have pushed up to 1.32 Market before dropping back slightly ahead of the bank holiday.
Next week the first major data release that will affect the GBPEURO rate will the European Consumer Price Index. Any improvement will likely see the Euro rally some of its lost ground back against the pound making current rates appealing in the short term for Euro buyers.
The other big data day next week will be Thursday that sees the ECB interest Rate Decision, ECB deposit rate decision, ECB Monetary policy statement and its following press conference. With the European Central Banks stimulus program struggling to have a positive effect I feel unless major changes are announced we will see the Euro weaken further against the pound.
In my personal opinion I feel that next week will present a few choice spikes for Euro buyers and will probably present the best levels for the next 4 weeks. I expect Sterling to lose ground as we approach the big vote and advise my clients if you are traveling in June you should be moving soon to secure your currency.
With European economy worries and Referendum news trading off against each other over the next 4 weeks expect much volatility in the markets to come!
The Pound sterling made a significant jump in strength following much needed positive figures for UK employment and wages yesterday. This has seen a big jump on Euro and Dollar buying rates presenting some of the best opportunities to purchase in the last few months.
Today sees the release of the Eurozone’s Monetary Policy Meeting minutes at midday and the general consensus among analysts and market watchers is that a positive outlook for growth, employment and investment is to be expected. Already outside investment into the Eurozone is ramping up aggressively providing much needed support for the embattled single currency.
Given this likely outlook I expect the Euro to rally back against the Pound damping down these recent highs by the weekend.
With the upcoming referendum creating further volatility in the markets the current rates for buying are looking good especially if you are travelling shortly.
As usual we provide High street beating rates all year round so get in contact today and secure yourself a great deal on your holiday money!
One of the largest data announcements to affect currency markets this week will be today’s Bank of England (BOE) UK Inflation and Growth forecast at midday UK time.
Dubbed by some analysts as “Super Thursday” this outlines growth expectations for the next year. Expectation is a cut from 2.2% to 2%. As for the inflation rate forecast rates have remained unchanged for some time but with a weakening economy (growth slowing sharply, poor service sector data and a slow down in wage increases) the time has come in my opinion for interest rates to be cut.
My outlook for the rest of the week is based on to outcomes.
- Mark Carney throws his wait behind the remain campaign today, if this happens we should see a modest increase in the Pound to Euro rates if only for the short term.
- Growth outlook is worse than expected and the BOE remains fairly neutral towards the referendum then we should see a drop in the pounds value.
I will endeavour to keep all my readers updated as “Brexit” and other economic issues affecting the currency markets continue to develop.
As usual for great high street beating rates on buying and selling currency keep it with CurrencyDeals4U.
April proved to be quite a volatile month for the Pound Sterling. Large gains occurred against the Euro before slipping on the final day of the month. The US Dollar on the other hand has lost value as April closed and now represents the best value for money in quite a few weeks.
So looking ahead for this Month the “Brexit” debate has swung towards the remain camp since President Obama’s comments in London in the final week of April. Though any further upset and swings towards the leave camp is likely to cause further volatility against the single currency.
The leave camp has been unusually quiet since Obama’s visit and I think we will see them becoming very active this Month.
Lingering Eurozone debts including but not limited to Greece’s economic troubles surfacing could cause some good opportunities for Euro buyers as we move forward.
My personal prediction is a gradual continued weakening of the pound as we approach the referendum in June punctuated by spikes as political comments move the markets one way or the other.
Keep a close eye on our blogs and rates this month if you have an upcoming holiday in the next 6-8 weeks!!