Friday’s trading saw the biggest fall against the Euro in 2 years as signs are continuing that the UK economy is struggling.WithHMV, Jessops and Blockbuster all experiencing problems during January we could be in for somemajor job losses during this quarter. Over 2012 UK employment data has been improving but with Q4 UK GDP data coming out at -0.3% just a week ago this has sent shockwaves through the currency markets having enormous negative impact on Sterling. GBPEUR exhange rates dropped by 1.8% during Friday which now takes us to the lowest level since October 2011.
In Europe manufacturing data was low but showed that the rate of contraction was slowing. Sterling fell against all European urrencies on Friday and if European data continues to be better than what is happening in the UK this current trend of exchange rate losses could continue into early next week.
European leaders will be meeting for most of next week in order to come to some form of agreement on the 2014-2020 EU budget. Previously in NOvember the 27 nation economic area failed to agree the deal pencilled in at 1 trillion Euro. One problem with the Euro’s recent strength is that is could have a direct impact going forward on foreign trade with the continent which would make it moreexpensive to trade with Europe so it is unlikely to carry on for the long term.
If you are reading this thinknig what wil happen next and how do I make sure I don’tlose out when buying Euros feel free to get in touch. Working for an award winning currency broker we can save you money when transferring currency compared to using a high street bank. Also, tools including minimsiing your risk by buying a forward contract can be extremely useful when you would like to safeguard your future currency requirements. To find out more and for a more personal response feel free to email me directly Tom Holian [email protected]