Sterling riding high but for how long?

GBP – Will the Bank of England backtrack?

What a week so far and there’s more major news to come.

Brexit has taken another big leap forward. With a transition deal (loosely) agreed, it means negotiations can finally move on to the juicy bit - trade.

However, Sterling’s upward momentum took a knock yesterday after the latest UK inflation figures came in lower than expected. It seems the Bank of England might have called it right; inflation peaked at 3% a few months ago and is starting to subside.

Today we have jobs data out and then the Bank of England (BoE) meets tomorrow for a rate decision. A May rate hike still looks firmly on the cards, unless the BoE begin to backtrack.

EUR – Awaiting Euro Summit

As we expected, the latest ZEW economic sentiment surveys indicated that German confidence has begun to wane.

The Euro remained pretty stoic in response which suggests investors are instead focused on the upcoming Euro Summit. EU leaders set to meet for a chinwag in Brussels on Thursday and Friday.

USD - Rate rise expected

The new Chairman, Jerome Powell, will be in the spotlight later today as the Fed is expected to raise interest rates for the first time in 2018.

Investors will be listening closely for any indication of how many more hikes are likely this year.

While higher rates are positive for the Dollar, the growing threat of trade wars is weighing on USD.

Sterling to Euro rate currently sits at £1.00 = 1.1450 Euros, see below for more comparisons.

Current rates:

Wednesday 21st March 2018 at 14:00

£1.00 GBP = 1.1450 EURO

£1.00 GBP = 1.4070 USD

£1.00 GBP = 1.8278 AUD

£1.00 GBP = 1.9621 NZD

£1.00 GBP = 1.8250 CAD

£1.00 GBP = 16.8305 ZAR

Need to Send Money Abroad?

At Clé France, many of our customers have a need for currency exchange.

We are pleased to have partnered with Key Currency to offer our customers favourable exchange rates on international currency transfers.

Key Currency is an award-winning currency exchange specialist, Key Currency Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 753989) and experienced in executing high-volume transactions.

As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.