It seems the festive period was just as busy for GBP/EUR rates as it was for the majority of us. Sterling has gained over a cent against the euro since the festive period but could this spike be short lived? With a lot of data releases set to come out from the eurozone over the coming days we could see a shift the other way. This morning we have already seen Spanish unemployment figures released and showing a positive outlook for the struggling economy. Figures today showed that unemployment in Spain decreased by 59.1k against expectations that they would rise by 50.3k. This could just be the start of some euro strength over the coming days. With German unemployment figures and retail sales being relesed today and tomorrow respectively, if these data releases have a positive outcome it could help the euro to rally against the pound and push back down towards the 1.22 region.
In my opinion if there is any positivity coming from these data releases it will knock GBP/EUR rates back down towards the 1.22 area and if we continue to see positive data coming out of the eurozone we could even see these rates head towards the 1.20 mark. I believe that if you are looking to purchase euros it could be worth making a move sooner rather than later as this could be a very volatile time for GBP/EUR rates.
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