Monday, 17 July 2017

Monday, 17 July 2017

GBP/EUR Rallies to Three-Week High of €1.14

Last week’s high: €1.1430

Last week’s low: €1.1185

Pound Rebounds vs. Euro

After struggling for the first half of last week, GBP/EUR surged on Friday thanks (in part) to Bank of England (BoE) official Ian McCafferty. As well as asserting that he would still be voting for higher borrowing costs at the next BoE meeting, McCafferty implied that the central bank should consider winding down its quantitative easing programme. ‘Given that other central banks are thinking about it, I think it would be remiss of us not to at least think about it. I think it’s a question that needs a bit of asking.’

Meanwhile, speculation about the European Central Bank’s (ECB) plans for quantitative easing put the Euro under pressure.

According to recent reports, the ECB is planning to keep its asset purchase scheme open-ended amid concerns it may have to backtrack on tapering plans if the Eurozone economy falters.

The GBP/EUR exchange rate was also able to advance to a three-week high thanks to positive progress in the UK’s Brexit negotiations. The UK Government appeared to be taking a softer stance on the subject of the nation’s financial obligations to the EU after its exit, and this change in tone was viewed as being positive for the future progress of Brexit discussions.

Many thanks to Foremost Currency for the content of this article

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