By Luke Dyson
As we begin a new week we have seen some significant gains being made by Sterling against the euro. Following on from a busy last week in terms of data, the European Central Bank have cut interest rates from 4% to 3.75%. This was expected from the ECB however it was stated moving forward they will be unlikely to cut rates any further.
This news made the euro weaken, pushing the pound higher, now trading at the highest point in nearly 2 years.
For Sterling against the US dollar we have also seen quite a bit of movement , but not in a positive sense for Sterling. Non farm payrolls come in on Friday at 272k, massively above the forecast of 185k and the previous of 165k. This result is very bullish for dollar and so has driven sterling-dollar down.
For the week to come we have a busy one data-wise. We have the Fed’s interest rate decision on the 12th at 19:00pm which again has the power to strengthen the dollar further.
We also have the ongoing general election campaigns, as we near closer to the 4th July the more volatile the market could become.
With where the rates are for sterling to euro, it is an excellent buying opportunity compared to rates over recent months. If you have an up and coming currency requirement please get in touch with your currency consultant today to discuss options in which you can limit your risk or even target a desired rate.