The GBP – EUR rates cooled off today as Mark Carney (Governor of the Bank of England) gave a slightly less optimistic outlook than expected. The Pound has strengthened over the last few trading days as not only is the Conservative Government Sterling favourable, but also a surprise improvement from the UK manufacturing sector was printed. Markets had expected Carney to indicate the timing of the next interest rate hike, very positive for the Pound. In fact, he revised down the forecast for the UK, bringing rates back in check slightly.
The overwhelming opinion is that the Pound will go from strength to strength, so I personally believe that rates will push towards the late 1.90s over the coming weeks. Aussie Dollar sellers may wish to move sooner rather than later!
If you have an exchange requirement, please feel free to get in touch. I’m reachable on the direct line to the trading floor (01494 787 478) or alternatively by email AJB@currencies.co.uk
Have a good evening!