GBPEUR hit near 9 month high – Buying Euros – Selling Euros (Steve Eakins)

GBP EUR Looks to Employment Figures for Support

The Pound has strengthened recently reaching a near 9 month high against both the Euro and the USD. I personally think this represents a great time to buy currency, especially the euro, as I do expect to see a correction down before the month end.

Yesterday the Pound did drop slightly as UK Inflation data including Production and Consumer figures both showed a drop. We also saw the Euro gain as German investors’ confidence improved, adding to evidence that Europe’s largest economy is gaining momentum.

Today the Bank of England (BOE) Minutes where released which showed a 9-0 vote on any interest rate and QE change in the UK.  This has created some strength for the GBPEUR trading pair and again gives the opportunity to buy the euro at the cheapest we have seen since the beginning of the year. Tomorrow we have the release of UK Retail Figures which are expected to show an improvement compared to last month. Personally I think this event could provide clients with the best time to buy the single currency within the next 7 days and would suggest clients looking at buying euros to move on this data.

On Friday the UK releases Public Sector Net Borrowing Figures; these are expected to show another increase in the amount the government is borrowing so could in turn weaken the Pound.

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Thank you,

Steve Eakins