The Pound has continued to struggle against the Euro towards the end of the week as the bad economic data appears to keep on coming. UK Manufacturing and Industrial Production data both came out much lower than expected and this caused the Pound Euro rate to fall below 1.13 for most of Friday afternoon before hovering at 1.13 on the Interbank level.
The problem that this particular set of economic data highlights is that of the uncertainty caused by the run up to the election as this data set covered the month of May.
The UK’s Trade Balance has also increased to over -£11.8bn and this has caused a big sell off for Sterling and led to the Pound falling against all major currencies including vs the US Dollar as well as the Euro.
US Non-Farm Payroll data which measures new jobs created outside of the seasonally affected agricultural industry came out much higher than expected at 222,000 compared to the expectation of 179,000 which shows how well the US economy is performing at the moment. The Pound vs Dollar exchange rate fell by 1 cent meaning the difference of £1,250 on a currency transfer of USD$200,000.
There is little UK economic data to be released until Wednesday next week when we see the latest set of UK unemployment data. Generally speaking this has been one of the positive parts of the economy so we could see a small lift for the Pound by the middle of next week. However, I think early next week we’ll see the Pound continue to struggle vs the Euro and the US Dollar.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you bank beating exchange rates but also helping you with the timing of your transfer.
For a free quote when buying currency then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org