Sterling continues its range bound pattern

By Grace Smyth

Rates have remained stable this week as the GBP-EUR pairing continues to test the limits of its current 1 cent range.

Yesterday the pairing continued to flutter around the top end of the range providing good opportunities for those looking to purchase Euros with many taking advantage and choosing to lock in their currency requirements using our Forward contract option.

There are lots of reasons as to why the rates might not be pushing through its current barrier and staying put at current levels.

  • The ‘ping-demic’ seems to be spreading across the UK and causing many to self-isolate and putting pressure on numerous businesses.
  • Brexit also remains a persistent issue with both sides still debating and refraining from performing any new actions over the Northern Irish protocol.
  • Travel restrictions continue to change with the latest update of fully vaccinated adults in the UK do not need to self isolate upon their return from amber listed countries (unless they are arriving from France) with just a covid test performed before arriving in the UK and a PCR test two days after arriving. So although travel seems to be more achievable, it’s not quite back to full compliment just yet.

The bank of England are due to meet tomorrow to announce their lasted interest rate decision, although no change is expected, we could see some hints at policy reversal given the UK’s recent economic data releases. If we see that bank take a more cautious view on their policy we could see the pound dip back a little, while any hint of an interest rate rise in 2022 could see a boost. Certainly the event to watch this week so stay in touch with your currency consultant to be updated on any market movements which could affect your transfers.