It was a quiet day of economic data for both the UK & Eurozone and this was reflected in the movement on GBP/EUR exchange rates.
The Pound made marginal gains, moving the pair back above 1.13 at the high. The EUR continued to find support around this level, with investors seemingly waiting for the next major data release or media update regarding the economic standing of each economy.
Much of the media’s focus today was on the weekend’s G20 summit, with UK Prime Minister Theresa May talks with global leaders had been extremely positive. Her focus seemed to be trade weighted “struck by strong desires” to form new bi-lateral trade agreement following the UK’s separation from the EU.
Talks with India, China and Japan were all very positive, with US President Donald Trump saying the UK-US trade deal would be “a very very big deal and a very powerful deal”.
Despite these very bullish comments the Pound has made little impact against its Euro counterpart, which indicates that the markets remain extremely sceptical about the UK economies current status.
We have seen multiple false dawns, with Sterling threatening to make a move before retracting once again. I don’t feel that there is enough investor confidence in the UK economy to drive its value up sustainably under current market conditions. As such, clients should be looking for short-term opportunities despite the PM’s bullish stance over the weekend.
However, EUR sellers may be wise to take advantage of some of the rates of the past three years.
The current media focus seems to be primarily focused on the UK economy and our on-going Brexit struggles. At some point the attention is likely to switch to the Eurozone and with issues surrounding Greece and the current Italian banking crisis bubbling under the surface, we could see the EUR weaken as a result.
If you have an upcoming GBP or EUR currency transfer to make 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 Matt.
Alternatively, I can be emailed directly on [email protected].