With UK retail figures and Public Sector borrowing both published at 9.30 this morning I think they could pose a potential banana skin for the pound. With the exceptional wet weather over such a sustained period I think many shoppers may well have been put off visits to the high street, and online shoppers may well have already taken advantage of the heavy discounting that started pre-Christmas. Distribution networks will have been hit, and there is also the cost of the clean-up of the flooding that will have caused additional government spending both nationally and at a local level- whilst Cameron has stated money is no object, markets may not see it this way with the value of the pound.
Whilst European data lately (inflation) has been disappointing, I think that Euro sellers may get a brief window today if UK retail is poor so be ready to move quickly given the general forecasts are for a strengthening pound over the year. To this end if you are buying a farmhouse in France, buying a villa in Spain, or your business has to pay invoices in Euro, then keep a close watch on the 9.30 data release. If you would like help in how to get the best exchange rate then please feel free to email Colm at [email protected] or call 01494 787 478 and I would be happy to talk you through our currency transfer service.