Which way is the pound going after BoE Interest rate decision?

10 May, 2018

Pratheep Prabaharan

It has been a quiet start to the week for UK economic data. Regardless of that, Pound strengthened against Euro over the course of Tuesday and Wednesday, mainly due to the currency see-saw effect where a strong dollar leads to a weaker euro and vice versa.

Today we have manufacturing production, trade balances and industrial production. Later today we have the Monetary policy meeting, vote and quarterly report, Governor Mark Carney’s speech and GDP estimate.

Anyone with a requirement to exchange currencies should keep an eye on the exchange rates today as we have key news to be released from the UK including BoE interest rate decision midday. The interest rate will be Key for the performance of the pound for the rest of the week. With so much data being released, expect GBPEUR and GBPUSD to be affected and as a result either strengthen or weaken.

If you’re buying a property overseas then consider getting your currency exchanged to avoid the risk of the rate falling unless you’re a risk taker. Sterling hit its best rate a few weeks ago in 10 months but that didn’t last long due to lower than expected inflation and poor growth figures. It’s very unlikely that the GBPEUR will hike again but the chances are that it could fall a couple of cents.

Currently, the pound is holding strong against the euro but BoE could see rates drop. If you’re not a gambler and want to take advantage of the strong pound against euro then get in touch.

Any requirements to convert your currency then call us at your earliest convenience to speak to your Account Manager to avoid the risk of rates falling across all currencies.