Sterling Euro exchange rates have gone back to their levels of last Thursday after the UK Purchasing Manager’s Index services sector showed a big lift from the consensus of 57.9 to 59.1. This is very good news for the British economy which is heavily reliant on the services sector for growth. Anything above 50 represents growth in the sector.
Manufacturing PMI data was rather low recently but as it only accounts for approximately 6.3% of GDP this is why the drop for the Pound against the Euro was limited.
The Eurozone also potentially has a few skeletons in the closet still to be revealed as Banco Espirito Santo announced a record loss of €3.6bn last week. One of Portugal’s biggest banks will now have to be rescued and split into a good bank and bad bank like some other banks across Europe in the past.
Not that long ago Greece had to bail out four of its own banks so it appears to me that there could be further problems round the corner which could put pressure on the Euro in the future.
Eurozone Retail Sales for year on year have come out at 2.4% against the expected 1.2% but this has done nothing to help the single currency which suggests to me that the support lies with Sterling at the moment and depending what happens with UK Industrial and Manufacturing Production data in the morning we could see further gains for the Pound against the Euro.
If you have a currency requirement to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you. Tom Holian firstname.lastname@example.org