Money Transfer NewsMarch 23, 2015 2:01 pm
Last week the UK budget was announced and unemployment data which showed some volatility in the markets. The EUR became slightly strong against the GBP as you can see from the chart below. The rate is still incredible for anybody looking to purchase houses or pay for weddings overseas. However, the GBP’s strength could force the Bank of England to delay increases to interest rates. Inflation may also be playing a part in affecting the current market too.
It looks like the GBP/EUR rates could be heading back towards the 1.37 mark as this week has seen a huge change in the rate. The USD has seen it push itself closer towards parity this week ahead of next week’s US Federal Reserve policy meeting. The crashing EUR is great for anyone in America looking to travel to Europe! The EUR is down 12.4 percent against the dollar since January. The European Central Bank recently began its quantitative easing program where they are buying government bonds in order to push down their yields. This is causing interest rates to fall in Europe which is having the knock on effect on the currency weakening at the moment.
The US Dollar is still staying strong after a crash in the market earlier on today which saw the dollar lose value. However, the GBP/USD rate has fallen to a five year low this week seeing the pound losing 5.9 per cent since January. For anybody holding USD now would be a good time to convert these. The market could move either way and it is not worth risking a good rate when you can secure the current one.
Categorised in: News
This post was written by Kayleigh Driscoll