Euro cheaper on interest rate speculation

28 July, 2011


The Pound pushed above 1.13 against the Euro in trading today, following speculation that the ECB will cut interest rates this Thursday from 1.25% to 1%.

Lower interest rates tend to mean a weaker currency – and therefore better exchange rates if you are transferring money abroad, and in this case sending Euros to France, Italy, Portugal or elsewhere.

The ECB’s announcement comes on Thursday lunch time – if their interest rate is not slashed, the Euro could rebound causing exchange rates to fall back again.

Speak to your currency broker if you have any forthcoming Euro requirements, and don’t forget you can fix exchange rates in advance for up to 2 years.