Market Outlook - GBP / EUR and GBP / USD

The Pound to Euro rate hit 5-month highs last week

Timing is always important when sending money abroad.

To recap, the Pound to Euro rate hit 5-month highs only last week.

It’s been more of a case of Euro weakness than Pound strength.

The Euro has struggled against other currencies too.

A little fact for you: the Euro has closed down against the US Dollar for the last five weeks in a row!

Eurozone economic data has recently been pretty weak. It may be enough to make the ECB pause on interest rates sooner than expected.

On the other hand, Catherine Mann, the Bank of England’s chief hawk, reckons the UK has a far bigger inflation battle than either the EU or US.

Hint: she sees more interest rates hikes coming.

While that’s bad news for UK borrowers, it gives support to the Pound. Overall, the GBP/EUR rate looks to have an upward bias and is likely to retest the recent highs.

As for the US Dollar, it’s been quite volatile of late – all that huffing and puffing over the debt ceiling got investors jittery.

But away from politics, the fundamentals in the US economy are strong.

The closely watched non-farm payrolls came out on Friday higher than expected for the 14th month in a row! That’s given the US Dollar a lift and GBP/USD looks to have a downward bias for now.

So what next, what should you do?

Timing is always important when sending money abroad.

It’s always worth trying to achieve the best rate possible. Even the small daily moves matter.

If you would like to discuss your currency requirements, please do get in touch.

You can speak to a member of our team on 01872 487 500.

Or click on the link below for our latest rates.

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Current rates:

Wednesday 7th June 2023 at 15:00

£1.00 GBP = 1.1628 EURO

£1.00 GBP = 1.2445 USD

£1.00 GBP = 1.8684 AUD

£1.00 GBP = 2.0581 NZD

£1.00 GBP = 1.6633 CAD

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Pound jumps to new 5-month highs.

Pound to Euro has hit new highs for 2023

Pound jumps to new 5-month highs.

This follows on from last week’s higher-than-expected UK inflation and retail sales figures.

Put simply, it increases pressure on the Bank of England (BoE) to keep hiking interest rates.

The GBP/EUR rate has gained 1.5% in the last month alone!

But it’s not all plain sailing for the Pound.

The Pound to USD rate has been trending down throughout May – falling 1.4% in the last month.

And that’s despite the US debt ceiling drama (which has been holding back the Dollar).

It’s a sign that the medium-term uptrend in GBP/USD may have come to an end and a retreat is now underway.

As you can see, there’s some pretty big moves happening in currency markets.

Timing is always important when sending money abroad.

Exchange rates are fickle beasts.