4 weeks till the big vote! Currency Markets entering choppy waters…
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!
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