Will Pound Euro rates improve further?

Yesterday was a flat day for Pound Euro rates as they remained stagnant and closed almost exactly where they opened the day. This is largely because there were few data releases, but also ahead of today as we see several key data releases. GBP/USD rates pushed up by around 30 pips throughout the day. This move was driven by poor manufacturing and services data from the US which caused the Dollar to weaken. This could also be seen in EUR/USD rates as the greenback lost 20 pips to the single currency through the day. In what was an uninteresting day, and with GBP>EUR rates currently the best they have been in 2 weeks, many are asking will Pound Euro rates improve further?

Currency News Today

With many asking if Pound to Euro rates will improve we have a busy day and week ahead. Starting early this morning with UK Halifax house prices at 08.30.

With much of the media suggesting the UK house market is slowing, and with the month on month figure predicted to show a 0.2% contraction, could we see them proved correct and the Pound suffer? Moving through the day though the major focus will be on the European Central Bank. They start by releasing GDP at 10.00 am, followed by their Interest Rate decision at 12.45, and concluding with the Monetary Policy Statement and Press conference at 13.30. Take note – every time this year the ECB and Mario Draghi have made an announcement the Euro has strengthened. If we then look forward to next week we have UK GBP, Inflation, unemployment, and news from the Bank of England. And unlike the Eurozone in recent weeks UK data has been poor and seen the Pound weaken.

So…..the next week poses several hurdles in a market which currently seems like a minefield – big data releases from what is a currently strong Euro and weak Pound. Therefore, those of you reading this may like to consider this and perhaps take advantage of rates that are currently at a two-week high.

However, those less risk averse may like to run the gauntlet and see what tomorrow and the next week brings. With much of the market assuming both poor data from the UK and further hints from the ECB about an interest rate hike, surprise results here could see the Pound rally further. As the saying goes with greater risk comes greater reward.

If you have any upcoming transfers and are perhaps concerned with the volatile state of the market, give Currency Index a call today. We can provide friendly and professional guidance to help you try to avoid any costly movements to the rate and your transfer when sending money overseas.