Currency Rates:

EURO/GBP - 1.151

Although the economic calendar is light today, the rest of the week is a busy one for the UK and the risk of volatility for sterling is high if the data surprises. Tomorrow, CPI inflation is expected to jump above 3%. Whilst this is positive, it is widely accepted that this is attributable to higher fuel costs and the 2.5% VAT increase in January. On Wednesday the minutes of the Bank of England’s Monetary Policy Committee are released alongside unemployment data. After the Bank lowered its growth forecasts for the UK in the recent inflation report, the minutes on Tuesday are likely to show a similarly downbeat outlook. The claimant count in the UK is likely to show a marginal improvement. With risk sentiment still driving the market, the risk of sterling dropping is a lot higher this week. If you have any large payments to make in the next few weeks, it might be worthwhile looking at fixing in today’s rate to avoid the market moving against you.

In the Euro zone, the key concern is still the fiscal situation in Greece which is likely to cause volatility. The markets are still awaiting a full breakdown of the supposed bailout, and as such a major global issue this is likely to cause knock on effects and drive risk sentiment over the next week. Aside from that, there is consumer confidence data out tomorrow (expected to show a considerable drop) and advanced PMI data on Friday. With such a major bailout waiting in the wings, this is likely to have a large effect this week – call now to ensure you do not miss out.

For more information on the euro or to request a quote, go to: http://www.smartcurrencyexchange.com/euro_exchange_rate.aspx