Pound Stays Strong Ahead of Tomorrow’s Unemployment Figures (Matthew Vassallo)

GBP EUR Lower Despite Weaker Euro Data 

The Pound has held its position against the EUR during Tuesday’s trading, with further small gains this afternoon. GBP has performed well against the EUR for the past couple of weeks and last week touched 1.19, providing some of the best buying opportunities of 2013. The question many of my clients are now asking is whether we will see 1.20 on the pair anytime soon and personally I would be wary about assuming GBP’s recent run will continue, particularly against the EUR.

Whilst GBP/EUR levels have been on the up for the past couple of weeks Eurozone economic data has also started to improve, with recent German and French Gross Domestic Product (GDP) figures coming in better than expected. We also have an on-going concern in the UK over our widening trade deficit and until Eurozone productivity improves, we may find that the Bank of England will try to control Sterling’s value. It would not be beneficial for the UK economy if the Pound gains strength but the Eurozone are unable to trade because of the soaring cost and it is essential to our long-term recovery that we keep our most affluent trade arm active.

If you do have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or just want an exchange rate comparison with your current provider, then please feel free to contact me directly at [email protected] or call one of our experienced brokers on 0044 1494 787 478 today.