Noticias de la Cámara

GBP/EUR retreats from 18-month high

17/04/2024 bannersnikitas2

Trade in the pound euro exchange rate was erratic in February, with the pairing briefly striking an 18-month high, before ending the month broadly lower.  

What happened last month?

A dovish shift by the European Central Bank acted as a key headwind for the euro in recent weeks. With many ECB policymakers offering their thoughts on when the bank should begin cutting interest rates.

The single currency’s negative correlation with the US dollar also applied pressure to EUR exchange rates through the first half of February, amid notable USD demand.

EUR sentiment strengthened later in the month as Eurozone data began to improve, but the euro’s upside potential was kept in check amid growing fears that Germany faces a recession.

The pound traded erratically February, in response to the Bank of England’s latest interest rate decision and some uneven UK economic data releases.

While the BoE pushed back against rate cut speculation following its latest policy meeting, the bank finally dropped its pretence that its next move could be an interest rate hike.

On the data front, Sterling spiked in response to an upbeat jobs report, with GBP/EUR even being carried to an 18-month high.

However, these gains were erased almost immediately, as confirmation the UK slipped into a recession in the second half of 2023, in addition to a weaker-than-expected inflation print, stoked BoE rate cut speculation.

GBP/EUR forecast

Looking ahead, both the ECB and BoE are set to meet in March. No policy changes are expected this month, but the language used by both banks will be scrutinised by investors for any hints to when they might begin cutting interest rates. 

Likewise, upcoming UK and Eurozone data will be watched closely to see how they might influence the central banks’ thinking on monetary policy. With any signs of cooling inflation and slowing economic growth potentially stoking rate cut bets.

If you need to move money to or from Spain, Currencies Direct can help you save time and money with excellent exchange rates, no transfer fees and multi-award-winning customer service.

You can learn more about how Currencies Direct could help you to maximise the returns on your international transfers here or by contacting ignacio.o@currenciesdirect.com at +34 952 906 581.


Socios Patrón

  • Hays España
  • Iberdrola
  • Diageo
  • EAE Business School
  • Selier Abogados
  • El Corte Inglés
  • AstraZeneca
  • Arriva a DB Company
  • PwC
  • Canon
  • Sage
  • Gleeds Ibérica
  • JCB
  • Oxford University Press
  • Mitie
  • Pearson
  • HSBC Bank
  • Cuatrecasas
  • CFP Energy
  • Mondragon Corporación
  • Telefónica
  • Banco Sabadell
  • Plain Concepts
  • Brico Depôt
  • Savills
  • Santander
  • GSK

Socios Corporativos

  • AFI, Analistas Financieros Internacionales
  • Aon España
  • Value Retail
  • Iberia Cards
  • Ferrovial
  • Parque Tecnológico de Andalucía
  • EGD Logistics
  • British Council
  • Roman
  • Boult Wade Tennant
  • Segro Spain Management
  • Brand Finance
  • Spectrum IFA Group
  • HM International Patient
  • Baker Tilly
  • Barrilero & Asociados
  • Arup
  • Colt Technology Services
  • Gamma
  • Schiller International University
  • Bunzl Distribution Spain
  • Schüco
  • Gilmar Real Estate
  • Quantexa
  • TSL Projects Spain
  • Croda Ibérica
  • Ayming España
  • Smith & Nephew
  • Vueling Airlines
  • Cubico Sustainable Investments
  • Berkeley Energía
  • Brunswick Group
  • Indra Group
  • Forvis Mazars
  • Safetykleen
  • IQS
  • Adlanter
  • McArthurGlen Designer Outlet Málaga
  • Grant Thornton
  • UAL Awarding Body
  • Araex Grands
  • MARCO Agency
  • Lowe Rental
  • Flutter
  • Control Group
  • Trainline
  • PageGroup
  • Agencia de Innovación y Desarrollo de Andalucía IDEA
  • Grupo Hospitalario HLA
  • Dukes Education
  • David Lloyd
  • A&O Shearman
  • CaixaBank
  • Rentokil Initial
  • Mazars
  • Globeducate British International School
  • ISP Schools
  • Sacyr
  • EY
  • ACS
  • Kreab Worldwide
  • Kensington School
  • Allergy Therapeutics Iberica
  • Haleon
  • BDO
  • Holiday World Resort
  • H10 Hotels
  • Presstour
  • CMAC Group
  • Cognita Schools
  • Oak House School
  • Lloyd’s Insurance Company SA, Sucursal en España
  • BT Global Services
  • Derby Hotels Collection
  • Panorama Properties
  • PKF Attest
  • ERM
  • De Cotta McKenna y Santafé
  • Gómez-Acebo & Pombo
  • Menzies LLP
  • Uhy Fay & Co
  • Lightsource bp
  • Barclays
  • Currencies Direct
  • Cabrera Rodriguez ETL Global
  • Firefly