10 more days to Christmas, not long now!
Kicking off with the EUR today as there is a lot of chatter surrounding GBPEUR – in short it’s going higher so if you are one of the rare few who have EUR to sell into GBP; do it now. Why?
- UK Interest rates will go up tomorrow either by 0.5% or 0.75%. This will invariably cause GBP to rally pushing it higher against EUR as the week/month unfolds
- EUR interest rates are also due tomorrow and as inflation hasn’t been as rampant in the Eurozone, therefore further hikes won’t be expected/as aggressive = EUR weakness
- Finally from a practical standpoint, the Eurozone relies heavily on tourism and Europe isn’t a destination hotspot over Christmas when it’s this cold! = EUR weakness
I know there isn’t many of you who have EUR to sell, however if you do please get in contact.
As we’ve touched on above tomorrow is a big day with interest rates due tomorrow at midday. As alluded to we are expecting a hike between 0.5% – 0.75%. Inflation data suggested that it has slowly started to tail off so there is a chance 0.5% could be on the cards. As always with these large data events it’s the press conference afterwards which carries most of the weight, hopefully Andrew Bailey aka Mr Negative cannot make it to ruin the party!
Looks like we are comfortably sitting above/around 1.20 now which is a relief for the importers amongst you. Nothing exciting to rock the boat but if you can buy above 1.20, do so now.
Have a good day, here to help as always