Sterling Euro rates waiting for US non-farm payroll data on Friday (Tom Holian)

Pound to Euro Forecast - Leadership Contest Drives GBP/EUR Rate Lower

The Pound vs the Euro has made gains since the middle of the month as economic data for the UK covering the period post-Brexit has come out better than expected.

UK retail sales started to help the Pound recover and with UK GDP coming out at 0.6% for the previous quarter the outlook appears a little more rosy.

The longer term issue to deal with is when Article 50 may get triggered as well as a potential further interest rate cut which may come in November.

However, this week all eyes will be on the US non-farm payroll data due to be published on Friday afternoon.

The US economy has been extremely strong this year and even though the election is just 2 months away the pressure is rising for an interest rate hike if the jobs data on Friday is strong.

Unemployment levels in the US are currently at 4.8% which is the best for years and this again supports the argument for an interest rate hike.

Typically is the news is strong then this could cause Dollar strength which often results in Euro weakness so if you’re looking at buying Euros then this could potentially see Sterling gain on later Friday afternoon if the figures come out higher than expected.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]

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