The pound has regained almost one percent against the euro this afternoon following the ECB decision not to raise interest rates.
Looking for sterling to recover from recent losses before transferring into euros? Then there’s been encouraging news this afternoon that could make you smile.
Following the European Central Bank decision not to increase interest rates this month the euro has dived against sterling – losing almost one percent. This is excellent for people planning to emigrate or pick up a foreign home since it increases the sterling / euro exchange rate.
The reasons the ECB decisions has disappointed investors? Though the markets did not expect the bank to increase rates this month it was believed ECB President Trichet would signal increases to come. He didn’t – instead referring to the precarious economic situation in the EMU. This caused the markets to sell the euro.
However it is unclear how long this euro weakness can last. In recent months sterling has submitted ground over and over again to the euro as economic data in Britain disappoints. This morning for instance British services PMI failed to meet forecasts – and in recent weeks both construction and manufacturing PMIs have fallen also. So there’s a strong chance this afternoon’s resurgence from sterling could peter out before long.
So what’s the best course for people transferring funds? It’s impossible of course to provide guidance for specific transfers without knowing the specifics. For personal guidance about a transfer please don’t hesitate to call us at Pure FX on 01494 671800.
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