With the quarter percentage rise in interest rate in the UK announced at the start of November - the Monetary Policy Committee of the Bank of England raised the rate for the first time in nearly a decade - the chances of the pound rising against the euro and other currencies was very likely.
However the much heralded rise didn’t quite deliver the bounce that many economics buffs expected. Another quarter percent rise is also expected to follow on in the not too distant future.
The EU is also rowing back on its QE (quantitative easing) which saw a trillion euros of liquidity injected into the financial system. This policy will also see some of the euro gains diminish. So perhaps some good news on the horizon for Irish mushroom growers in the currency markets - as long as there are no unexpected shocks, from the Brexit arena or any other quarter.
The spectre of a no deal Brexit firmed up in November, thus driving the sterling back to the €1.11 mark in mid-November. The deadline of the December meeting of the EU leaders will surely crystalise the Brexit direction.
