Best Euro rates since 2008

On Wednesday the Pound hit its best rate against the Euro since before the financial crisis of 2008, giving a new year bonus for those of you looking to send Euros abroad. With markets quiet over Christmas and New Year, fallout from the snap Greek election and continued uncertainty over Greece’s bailout terms, have sent the Euro lower in price. With no major data due out today apart from UK mortgage approvals (9.30am), it is likely that rates will remain good and it is certainly worth considering booking a rate now, for a future Euro requirement before the first full week of the new year.

Elsewhere, there is little to report except that the US Dollar continues to get more expensive, with most other currency pairs relatively stable. The dollar gained more value in 2014 than in any year since 2005, amid speculation that the Federal Reserve will soon raise interest rates, ahead of economies in Europe.

Next week we are back to a full week’s economic calendar so there is likely to be more volatility in the markets. Highlights to watch for will be Eurozone inflation (Wednesday) and US non-farm payrolls (Friday) as well as the monthly Bank of England interest rate announcement, which is on Thursday.