The Pound found some support during Thursdays trading, following further losses against the EUR earlier this week.
GBP/EUR rates have hit a high of 1.0874 this morning, with the EUR now likely to find some support around 1.09.
Those clients holding the Pound will be looking at the current rates with some distain but the truth is, things could continue to get worse before they get any better.
Sterling dropped to a low of 1.0826 against its EUR counterpart on Wednesday, with the single currency trading close to an eight year high against the Pound.
If this key resistance level is broken sustainably, then we could see another drop, which leads me firmly to the conclusion that the downside risks surrounding Sterling, continue to outweigh the upside gains.
The Pound has struggled against a negative market perception for some time now and despite some better expected data late last week (Unemployment figures came out 4.4%), it has struggled to make any significant impact against the EUR or USD of late.
Any clients holding out for better rates than the current levels need to be prepared to risk further losses and certainly look for short-term opportunities, rather than hold out for longer-term gains.
I am struggling to see where a spike in market confidence will come from. Despite Brexit negotiations taking a back seat for the next month, the outlook remains fairly bleak based on early reports and this is likely to drive investor confidence and risk appetite over the coming months.
With the current inflation levels, a cause for concern and above the government’s target of 2%, there are question marks over whether interest rates should now be raised. However, Bank of England (BoE) governor Mark Carney has played down this prospect due to the uncertainty surrounding the UK economy after Brexit and this is another reason we are seeing the Pound remain under pressure}
If you have an upcoming Sterling or Euro currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.