GBPEUR Forecast 3rd January

GBP EUR Slumps After Stronger Euro Growth

The pound found support yesterday on the back of better than expected Manufacturing data for the month of December.

The current trend actually looks to be improving for Euro buyers although I do think there are bigger risks of the rate falling than improving over the course of the next few months.

The big driver on sterling is the likelihood of further QE and it must be said strong Manufacturing figures support a view that more QE is unnecessary. I am not predicting a crash but it does appear that the rate will struggle to improve significantly in the future. Confidence has really returned in recent months to the Eurozone and this is reflected in the rate.

Construction data is due at 09.30 today and could well put an end to this mini rally. Construction has been the main loser of the last few years and poor data here would take the wind out of sterling’s sails.

The rate tested the lows of sub 1.22 but there was not enough momentum for it to maintain that trajectory. Consequently we have seen the rate bounce back. There is a large amount of economic data due out in the next few days and weeks which could move the market so keep in touch with the site to keep up to speed on the latest GBPEUR news.

If you are considering a particular requirement you may find it useful to speak directly to me. As a specialist currency broker I can assist with all the information to make an informed decision on when to buy or sell your currency. [email protected] or call 01494 787 478 asking to speak to me Jonathan.