The pound has slipped marginally lower against the Euro as uncertainty over Britain and its future trading relationship with the EU remain firmly in focus. Rates for GBP EUR have dropped almost 0.25% lower.
Tomorrow is important with speeches from Bank of England Governor Mark Carney and ECB President Mario Draghi and there could be high volatility on the back of their comments. This is unusual to have these two voices speaking on the same day other than the usual monetary policy meetings, which are always held on a Thursday, not a Tuesday. They obviously have something to say….
Buyers of Euros should also be aware of the UK GDP numbers released on Thursday. The markets are expecting a fall to 0.3% in Quarter 3, down from 0.7% in Quarter 2. This is the economic data release that everyone has been waiting for and will certainly make front page news. If it is a weak number then those who campaigned for Remain in the Brexit vote will say “We told you so!” whilst the Brexiteers on a stable or even positive number will ask “what was all the fuss about?”
My view is that there will be a small but noticeable deterioration on the GDP numbers. I don’t think it will be as bad as many have forecast. Consumer confidence in my view is still very positive and the high streets are busy. Anything positive would be a huge boost for the pound and there could be a good spike for clients needing to buy Euros.
Clients who are buying Euros continue to feel the pinch and the outlook is not set to get better in the short term. There are short term opportunities and this week has a couple of events which may see market movement. If you have an upcoming EUR currency requirement either buying or selling and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]