Even though yesterday was a relatively quiet day for data releases, significant weakening for Sterling was recorded. Rounding off a general trend away from the fresh 8 year highs reached last week for GBP/EUR rates at 1.44, poor retail sales figures released in the UK economy caused rates to drop to the low 1.40’s. It was expected that due to the contraction recorded in the retail sector, normally a fantastic performer for the UK economy, that GDP figures will dissapoint markets further on the British economy. As a result, this lack of confidence in the Pound caused rates dip back below the magic 1.40 marker.
However, GDP figures came in higher than expected, surprising everyone, and causing all of the losses for the Pound on Monday to be reversed. Rates suddenly catapulted up to 1.41 this morning. But it is important to note that rates were moving in the opposite direction before this little psychological stunt in the markets. GDP figures also did exceed expectations at the start of the month, they simply did not come in lower than the 0.7% previously predicted.
Without strong data to change the current course of GBP/EUR rates following the agreekment, I fully expect rates to continue journeying downwards. Those looking to purchase Euros should call 01494 787 478 and ask for Joshua to receive a free quote on your transfer. Alternatively, email me on firstname.lastname@example.org to discuss how to maximise the value of your Sterling while the market is moving against you.