Eurozone Unemployment Figures Could be Key (Matthew Vassallo

GBPCHF Exchange Rates Reach Highest Levels Since Mid-March
Matt Vassallo

GBP/EUR exchange rates continue to float between 1.21-1.22 on the exchange during Thursday’s trading. It did seem as if the EUR could build some momentum into this week following poor UK Retail Sales figures but once again the Pound found further market support. Anyone with a GBP/EUR requirement will have kept a close eye on the release of yesterday’s UK Gross Domestic Product (GDP) figures, which came out slightly worse than expected. These figures are used as a key measure of UK economic activity and due to the slightly negative reading, we may see the EUR spike during Thursday’s trading, providing EUR sellers with an improvement over current levels.

Any improvement for the EUR may be short lived however, as Eurozone unemployment figures and inflation data is due out on Friday. If either of these show a negative reading it is likely the Pound could move through 1.22 on the exchange. Moving forward I do not expect GBP/EUR rates to continue on an upward curve indefinitely. Only recently there were concerns raised by the Bank of England (BoE) over the Pound gaining too much value, which could ultimately have a negative impact on our export industry. Although I don’t anticipate a move back down to the lows we witnessed back in 2012, I still feel the EUR has scope to improve. The Pound on the other hand has been around the current levels for some time, yet has failed to break through the current resistance barriers.

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