Tomorrow is an important day for the pound and Euro rate

GBPEUR Levels Back Near the Recent Highs as Investor Concerns on the Euro Heighten

Tomorrow is a very important day for the pound with Bank of England Minutes plus Retail Sales, I personally would favour a little more GBP strength, anyone with an interest with the pound and euro rate should pay attention!

Thursday is another important day for the pound with the first revision of UK Gross Domestic Product (GDP). We also have Public Sector Net Borrowing (PSNB) figures Thursday morning which reflect just how the government is managing their borrowing. Borrowing and growth are two big features of the coalition’s economic plan and it would seem reasonable to again expect good news for sterling here.

Key factors that could cause problems here include the Scottish Referendum and also any economic slowdown in Europe. With the UK so dependent on trade from our EU partners any stagnation across the Channel could derail Britain’s target of an ‘export led recovery’. Sterling should continue to perform well but the main driver is the long term prospect of an interest rate hike. To be kept up to speed with just how this all pans out, please speak to one of our knowledgeable and experienced team or contact me directly on [email protected]