Euro Sterling Forecast April 2014

Written by on April 1, 2014 in Currency Information

Euro Sterling Forecast April 2014Pound climbs 2 cents to 1.21 versus euro, as Eurozone inflation falls

Sterling hops, leaps and bounds!

The pound jumped 2 cents versus the euro in March, to a peak of 1.2125.

By contrast, the pound was at just 1.1516 in March last year. Hence, it’s since climbed +5.08%.

To put this into context, a £250,000 transfer to France would hence be worth +€14,625 more today than in March 2013.

(Please bear in mind, these are the interbank rates at the time of writing. This means the exchange rate may have changed since then.)

Sterling may climb higher, as Eurozone inflation dives

What’s more, the pound could exceed 1.2125 against the euro in April. Here’s why:

1. Inflation in the Eurozone fell to just 0.5% in March, the lowest since November 2009.

This may weaken the euro, because it brings the threat of deflation, and Japanese-style economic stagnation.

2. The European Central Bank may print huge amounts of money, to lift inflation.

This may bring down the euro, because the more money the ECB prints, the further the euro falls.

3. The Eurozone’s activities grew more slowly in March, while manufacturers cut prices.

This may make the euro fall, because it tells us the Eurozone’s factories are having trouble finding business.

With this in mind, look for the pound to rise against the euro in April!


Related Articles

How to make the most of your money when it comes to currency exchange

With more than 20 years of experience, OFX aims to take the mystery out of foreign exchange and provide clients with best in class service, competitive rates, market insights and the right currency strategy to help you plan ahead. Introducing OFX – Where the world’s moving when it comes to global payments Often people default […]

Continue Reading

Exchange Rates and Their Impact

Many of you reading this will be no stranger to the vagaries and volatility associated with the currency markets. It is a major consideration in any expatriates’ life unless they have severed all ties with the UK and have fully committed to a Francophile existence and at no time in recent history has it been […]

Continue Reading

What’s the best Currency Exchange for you?

Currency exchange simply means exchanging one currency for another. But, there are different methods for doing this. The way that is best for you depends on your specific requirements. When it comes to exchanging British pounds to euros there are three options: Travel cash/Holiday money Most people experience the process of currency exchange for their […]

Continue Reading

How To Save Money On Your Euro Transfers

When it comes to foreign currency transfers, most of us think it can be a tad complicated and we simply arrange a direct transfer online through our bank account for the convenience. However we looked into the process and found it’s worthwhile to spend just a little bit of time to set up an account […]

Continue Reading

How To Make Your Pension Go Further In France

You’ve worked hard to pay for your dream retirement in France, now’s the time to enjoy that relaxed way of life you’ve planned.  If however, your ties to the UK are not entirely cut, and you have a pension being paid into a bank account in the UK –  then you should consider ways to […]

Continue Reading


If you enjoyed this article, subscribe now to receive more just like it.

Subscribe via RSS Feed

Comments are closed.