Could China’s slow down affect GBP/EUR? (Daniel Johnson)

Yesterday we saw the release of UK manufacturing data and Mortgage approvals. Mortgage Approvals were up from 69.87k to 70.41k and did cause some Sterling strength against the Euro, GBP/EUR currently sitting at 1.3650. What is worrying however was manufacturing PMI data which is down from 52.7 to 51.9. This is a clear indicator that the value of the Pound is hitting UK exports. Mark Carney the Head of the Bank of England has already stated he is willing to weaken the Pound to reduce a further drop.

£34bn was wiped off the FTSE 100 this morning after China’s significant stock sell off yesterday. China’s stock exchange was halted at one point due to a 7% drop due a tenth consecutive month of poor manufacturing data. The last time there was a drop of this size we saw GBP/EUR drop almost 5 cents. I think the way things are at present it may be wise to vote on the side of caution and move sooner rather than later if you are a Euro buyer.

If you have a currency requirement I would be happy to assist, I am in a position to beat any competitors rate of exchange and I will also keep you up to date with market volatility and data announcement to help maximize your trade. Please do not hesitate to get in touch I will be happy to reply personally, feel free to contact me on [email protected] or alternatively give me a call on 01494 787 478 and ask for Daniel Johnson. Thank you for reading my blog it is appreciated.