Currency Rates

EURO/GBP - 1.105

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

The Bank of England kept interest rates on hold at 0.5% and kept emergency funding on hold by voting not to expand their liquidity programme. After a rollercoaster week for sterling which has seen a swing of 7 cents against the US dollar, the market reaction to the decision was muted. At the start of the week, sterling suffered considerably on concerns that the upcoming election would see the first hung parliament in over 30 years. Investors sold sterling heavily on Monday as a hung parliament would lack the requisite majority to put through the tough legislation needed to clear the deficit and get the UK back on track. However, Wednesday saw UK service sector activity at the highest level for 3 years and consumer confidence at the highest level in over 2 years. This helped bring sterling back above $1.50/ £1 and 1.10/ £1 and whilst yesterday saw marginal improvement against both the euro and US dollar, house price data published yesterday showed that prices dropped by 1.5% in February. This prevented the pound from pushing much higher. This week has shown the importance of being in touch with a currency specialist sooner rather than later, as the volatility experienced by many who have held out has severely impacted their purchases. Today, we have inflation data for the month and US unemployment data – both of which have the potential to cause significant movement. Get in touch now to make sure you don’t lose out.

In the Euro zone, the European Central Bank also kept rates on hold as expected. The Bank are preparing to outline the next steps in unwinding emergency measures, but have had to push back potential rate rises after lacklustre economic data and concerns over sovereign debt in the region. Revised fourth quarter GDP growth was unchanged at 0.1% demonstrating the fragility of the recovery. Greece saw high demand for a fresh round of bonds, which suggests that the markets are feeling slightly happier with the country. Out today we have data on German factory orders which is expected to show an improvement on last month. This is a great time to move euros into sterling – get in touch now to take advantage of the rates.

Call 0808 163 0102 or +44 (0) 207 898 0541 from outside the UKor fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx