Currency Rates

EURO/GBP - 1.139

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx

Sterling experienced a rollercoaster ride yesterday, as it moved sharply down and then recovered ground later in the day against the euro and US dollar. The initial drop yesterday morning was as a result of the negative comments from the Monetary Policy Committee of the Bank of England who were taking questions from parliament’s Treasury Committee. Mervyn King said that “It may be necessary to expand Quantitative Easing. Despite the depreciation of sterling we haven’t seen much evidence of a pickup in net trade which is an important part of our rebalancing”. This caused sterling to fall, and this was further compounded when data showed 10,000 fewer mortgage approvals than were initially expected. This downward movement was reversed against the euro as German and Belgian business confidence came in worse than expected and in addition, French consumer spending disappointed.

Out today in the UK we have very little data, but yesterday’s volatility demonstrates why it is so important to speak to a currency specialist sooner rather than later to help pre-empt and avoid large losses on your currency transfers.

As mentioned, the euro suffered after business confidence data came in worse than expected. The concern is that there has been very little growth in the Euro zone and very little to suggest any positive movement in the next few months. Markets were also digesting an article by George Soros in the Financial Times in which the notorious currency trader severely criticised the euro over the fact that the currency lacks a centralised treasury which can help stimulate the currency in the current downturn. Even if Greece is bailed out, Italy, Ireland and Portugal are in a similar state and the centralised monetary policy and de-centralised fiscal policy is leaving these economies with no ability to effectively manage their economies. First thing we have German consumer confidence and also the final GDP figures for the country. If these come in worse than expected we are likely to see some volatility. Get in touch to maximise your chances of getting in at the best price.

Call in now to avoid missing out. Remember to minimise the chance of losing money due to adverse movements in the markets by speaking to a currency specialist as early as possible. Call 0207 898 0541.