Sterling has recovered some of the lost ground against its EUR counterpart, with GBP/EUR rates floating around 1.14.
This slight improvement has given some respite to those clients holding the Pound, following heavy losses over the past few weeks.
It wasn’t that long ago that the Pound was creeping towards 1.20 but a complete shift in conditions, has seen the EUR gain almost seven cents at its high.
Despite Sterling finding a foothold over recent days, the current climate both politically & economically inside the UK means that any major upturn is unlikely in the short-term.
We can help our clients pin point specific moments to execute their currency exchanges, even when they are battling a falling market.
The current uncertainty surrounding our fragmented government and grave concerns amongst investors regarding how we will facilitate our Brexit, are two of the defining factors driving Sterling’s value at present.
With both of these issues, in particular the long Brexit process, will be resolved in the short-term and as such clients with a GBP/EUR requirement need to be realistic in terms of what they’re targeting on any exchange.
Clients should also consider any bottom lines, in order to protect their positions wherever possible.
There are no guarantees in the currency markets and with so many unanswered questions, let us help you navigate this turbulent market and maximise any currency exchange you need to make.
Looking ahead and we have some key economic data today, in the form of PMI Construction figures. This is always a key barometer for investors, along with the latest Inflation Report Hearings. These will be monitored closely due to the UK’s rising inflation levels and any further predicted rises could halt Sterling’s mini recovery.
Tomorrow sees the release of the final set of PMI data for the week, with clients holding the pound hoping Services figures come in above 53.8 from last month.
However, it could be Thursday could hold the key, with the latest NIESR GDP estimate. This well-respected think tank has influence on investor confidence and any positive or negative outlook is likely to have an instant impact on Sterling’s value.
Finally, on Friday we have a host of Manufacturing & Industrial production figures, alongside our latest trade balance figures. Any increase in our trade deficit is unlikely to boost Sterling’s levels as we head into the weekend.
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@example.com.