Pound hits 2 ½ year highs against Euro.
Some big trends at the moment
Yes you read that right, the Pound to Euro has hit 2 ½ year highs against the Euro.
It’s a momentous move considering what’s happening.
With UK inflation now officially below the 2% target, the Bank of England is almost certain to cut rates in November and possibly December.
That is likely to weaken the Pound as the UK starts to close the interest rate gap with the EU.
Of course, the EU is expected to keep cutting too – but the UK has more scope to cut.
Pound to US Dollar is going the other way.
The GBP/USD exchange rate has just hit 2-month lows.
There’s a couple of reasons for this.
Firstly, the US Fed is expected to cut rates in a “slow and steady” fashion compared to more aggressive cuts expected in the UK.
Secondly, both polls and betting markets have swung towards a Trump victory in recent weeks. Trump’s economic policies are seen as more expansionary / inflationary, which is strengthening the Dollar.
We are now only 2 weeks away from US election day.
In terms of news this week, there’s a bunch of speeches scheduled from central bankers, including 3 from Bank of England members.
They tend to offer up clues on forward policy, so often move the markets.
Note also, we are also coming up to the October Budget.
That’s a risk event for the Pound as bad news is coming.
So what next, what should you do?
Get ahead of the game and read our Guide to Foreign Currency Exchange.
Download the Guide Here - with no obligation of course.
For any concerns or discussions on your upcoming currency requirements, make sure to reach out to us.
To find out our latest rates, click below.
You can speak to us on 01872 487 500.
To find out our latest rates, please click below.
- Great exchange rates
- Quick and easy transfers
- No transfer fees
- Expert help and guidance
- Authorised by the FCA
Current rates:
Wednesday 22nd October 2024 at 10:00
£1.00 GBP = 2.0005 EURO
£1.00 GBP = 1.2990 USD
£1.00 GBP = 1.9445 AUD
£1.00 GBP = 2.1465 NZD
£1.00 GBP = 1.7970 CAD
£1.00 GBP = 1.1240 CHF
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Want to Learn More?
- We have created a selection of Free PDF Guides for you to download covering many aspects of buying property abroad, visit our PDF Guides Page today or download our "Buying A Property in France" Guide PDF document.
-
Want to Live in France Post-Brexit? download our "PDF Guide to Living in France Post-Brexit" document.
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Need to Send Money Abroad?
- At Clé France / Key Currency, many of our customers have a need for currency exchange.
- We are pleased to offer our customers favourable exchange rates on international currency transfers.
- As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.
How to Save Money on your foreign currency transfers
- Key Currency can save you money by offering more competitive rates of exchange than your bank.
- Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.
- All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.
For everything you need to know about French property visit www.clefrance.co.uk
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It’s a pivotal time in currency markets.
Pound at risk of further falls this week
The central banks are itching to cut rates but want more proof that inflation is tamed.
Speaking of which, the latest UK inflation number is due out tomorrow and may fall below the 2% target.
For those requiring a stronger Pound Sterling, the news could cause a setback as the Bank of England could speed up the pace at which it lowers interest rates.
Bear in the mind, the Pound has been 2024's best performing major currency.
This is because the Bank of England has been slow to cut interest rates, having only cut once so far, in August.
At 5.0%, the UK’s base rate is the highest central bank policy rate in the G10.
Put simply, the Bank of England has the potential to cut aggressively, which would be expected to weaken the Pound.
As for Euro, the ECB has been quicker to act.
This Thursday, they may strike again.
Another 0.25% cut is expected but investors will be also listening for clues on future cuts.
The US Dollar is bucking the trend at the moment and showing strength.
Jobs data in the US has been surprisingly robust and inflation is stubborn.
It means the Fed may sit on their hands – which is boosting the Dollar.
Elsewhere in the market, we note some good gains for the Pound against AUD, CAD and NZD over the past week.
So what next, what should you do?
Get ahead of the game and read our Guide to Foreign Currency Exchange.
Download the Guide Here - with no obligation of course.
If you have a currency requirement, please get in touch so we can discuss timing and rates.
You can speak to us on 01872 487 500.
To find out our latest rates, please click below.
- Great exchange rates
- Quick and easy transfers
- No transfer fees
- Expert help and guidance
- Authorised by the FCA
Current rates:
Wednesday 15th October 2024 at 11:00
£1.00 GBP = 1.1990 EURO
£1.00 GBP = 1.3080 USD
£1.00 GBP = 1.9475 AUD
£1.00 GBP = 2.1465 NZD
£1.00 GBP = 1.8060 CAD
£1.00 GBP = 1.1265 CHF
-
Want to Learn More?
- We have created a selection of Free PDF Guides for you to download covering many aspects of buying property abroad, visit our PDF Guides Page today or download our "Buying A Property in France" Guide PDF document.
-
Want to Live in France Post-Brexit? download our "PDF Guide to Living in France Post-Brexit" document.
-
Need to Send Money Abroad?
- At Clé France / Key Currency, many of our customers have a need for currency exchange.
- We are pleased to offer our customers favourable exchange rates on international currency transfers.
- As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.
How to Save Money on your foreign currency transfers
- Key Currency can save you money by offering more competitive rates of exchange than your bank.
- Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.
- All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.
For everything you need to know about French property visit www.clefrance.co.uk
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