After hitting 4 week highs to buy Euros with Sterling earlier this week we saw the recovery for the Pound come to an abrupt halt on Wednesday with UK manufacturing and production data coming in lower than expected.
The fall for the Pound continued yesterday when the European Central Bank decided to keep monetary policy on hold.
There was a small expectation that the central bank may have amended their current QE programme but they announced yesterday that there would be no change.
This caused the single currency to strengthen vs the Pound creating some good opportunities to sell Euros to buy Sterling.
German inflation data is due to be published on Tuesday and as the powerhouse of Europe if this shows further falls then this could cause a brief period of Euro weakness.
However, the problem for the Pound is still being caused by the fallout from the Brexit vote and until we have any certainty as to when or if Article 50 may be triggered then this is likely to cause pressure on the Pound vs the Euro.
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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