GBP/EUR – Three more months of suffering

GBP to EUR rate 08.08.2017

Last week was horrible for Sterling and current exchange rate for GBP/EUR droped to 1.10 according to XE.com . Moreover we can expect it going even below that level. As you remember the recent drop is associated with unfavourable reports from Super Thursday and inflation rate data. All this is shaking the confidence towards British currency and economy. Meanwhile there are some signals coming from fundamental analysts that say GBP to EUR exchange rate will probably start slow recover in 3 months. However the year-end target among currency exchange analysts community is just 1.12 against EUR and 1.28 against USD. Financial analyst Asmara Jamaleh expects some recovery as well as further high volatility of pounds Sterling rate. Most probably we can expect the rate going up and down in between 1.09 and 1.15. However it’s still very hard to make predictions as long as uncertainty over Brexit is still not removed. As of now UK government proposed to pay 40 billion compensation for leaving the EU while Brussels expects it to be at least 60 billion. In reality the lowest boundary seems to be around 50 billion. Apparently the UK is trying to reduce this figure as much as possible but Read More …

British pounds exchange rate having not the best times

British Pounds looses value again

Yesterday was not the best day for British pound that was harmed by Bank of England Governor Mark Carney speech. It has been announced that The Bank of England revised the growth outlook that is forecasted to be worse than anticipated originally. With existing pound weakness and bad influence of “Super Thursday” that was just last drop for pound to go below 1.11 against Euro. As you probably heard UK economy has high chances of slowing down because of high inflation figures and uncertainty with Brexit. Markets are reacting accordingly and pound exchange rate against EUR and USD are hitting year’s minimums. The situation is just consequence of multiple things: Euro becomes stronger not only against pounds but also US dollar. With a lot of nose around Donald Trump and his possible cooperation with Putin weakens the dollar. European Union seems to get stabilizing and also there is high chance QE program will be tapered this autumn. UK and EU still can’t come to any agreement about Brexit that is likely the most influencing factor. The short term forecast for British pounds is still negative and I don’t expect the situation to improve over next months. If you hold funds Read More …