GBP/EUR exchange rate at an 8 year high

the pound-euro exchange rate has risen to an eight-year high recently.

The European Central Bank is expected to confirm further quantitative easing in December.

De Meo said: ”If the ECB does act, it places Europe on the opposite trajectory to the US and a very different trajectory to the UK. This divergence will be reflected in the euro losing ground possibly with GBP/EUR consolidating above 1.40 in the short term.”

Trask went further. “The ECB may decide to go nuclear and also cut interest rates, which could see the euro’s value drop like a stone,” he said.

Moneycorp’s Uniacke said: “If the UK outlook improves and a rate hike becomes more probable, we could see GBP/EUR move to 1.45. However, if the economic situation in the UK becomes worse, and rate rise expectations are delayed further, we could see GBP/EUR move to 1.35.”