Euro Pound Exchange Rate Report – 1st November 2010
November 2, 2010 Leave a comment
The week opened with what proved to be the low point for the Sterling/Euro currency pairing at 1.1219 on Monday, however by Tuesday afternoon we saw the rate jump by over 2%, a significant amount on any size of transfer.
The spike came after the UK announced its GDP figures for the third quarter of 2010 and an actual figure 0.8% doubled the expected 0.4% leading to a Sterling rally against a vast number of currencies.
The good news continued into Friday with consumer confidence figures showing better than expected results and the Pound increased to a week high of 1.1521, almost 3% up on the start of the week.
The spike has represented excellent buying opportunities however for those selling Euros the movements have made a significant impact on the Sterling return. Although the Pound appears to be on the front foot there is still much that could suggest organising a transfer sooner rather than later would be the best option.
The reason for this is due to data released this week with the Bank of England interest rate decision on Thursday. If the Monetary Policy Committee decide to be led by member Andrew Sentence and hike interest rates by 0.25% the Sterling rally my well continue, however with the announcement also due regarding the Quantitative Easing policy any form of increase in the stimulus package could see a significant fall in GBP rates across the board.
This puts any Euro requirement either buying or selling in a fragile position, contact your currency broker to take the risk element away from the markets prior to the releases.
If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open an exchange rate account today.