GBP to EUR: As UK GDP comes in weaker than expected we are left with perfect Pound buying opportunities

Wednesday, 25 January 2012 11:34

"These levels and slightly higher ones in EUR/GBP should make excellent GBP buying opportunities."

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The GBP to EUR exchange rate is 0.3% higher on yesterday, GBPEUR is at 1.2023.

According to one foreign exchange services company, current rates have created a 'perfect buying opportunity' for the Pound.

Schneider Foreign Exchange have taken the opportunity to mull over the latest UK GDP figures, saying that we are left with perfect buying opportunities for GBP:

"UK GDP was weaker than expected - falling 0.2% quarter-on-quarter in Q4 - and the minutes of the Bank of England's January meeting showed 'some' members saying that further asset purchases were 'likely'.

"More Quantitive Easing is largely expected, and despite the fact that the UK economy is very weak - in line with the rest of Europe - Bank of England debt monetisation means that there is no downward impact on Gilt prices.

"These levels and slightly higher ones in EUR/GBP should make excellent GBP buying opportunities. The chances of settling close to £0.84 in EUR/GBP or rising above it are higher than they have been in some time."