The euro continued its recent surge against the pound and at time of writing was hovering around the 1.24 mark, making inroads of over a cent on last week’s trading. This is another example of how quickly the tide can change and proves to all those who were waiting for the ‘inevitability’ of 1.30, that there is no such thing as certainty in the currency markets.
The reason for this sharp spike could well of been a reaction to the release of this morning’s UK manufacturing data, which made for uninspiring reading. The sector produced its worst results for 3 years and will have investors seriously questioning how stable
the UK economy and therefore GBP really is. With PMI levels now sitting below 50, which indicate contraction in a countries economy, serious questions must now be asked about the UK’s growth prospects over the coming months.
Personally I now feel levels will hold below 1.25 in the build-up to the Greek elections and anyone looking to sell euro’s may want to take advantage of this positive, somewhat unexpected market movement.
If you have an upcoming currency requirement or would like to be kept up to date with current market trends, then please feel free to contact me directly at [email protected] or on 01494 787 478.