Sterling saw a small increase in value against the Euro towards the end of the week after the UK manufacturing data came out better than expected.
The results were relatively strong owing to the low value of Sterling which has increased orders from the continent.
However, in my mind I think the gains for the Pound vs the Euro will be relatively short term as the UK’s Trade Deficit figures did not show any signs of improvement.
Confidence in the UK and Sterling is very low at the moment caused by the uncertainty of what is happening with the Brexit discussions. We are almost 6 months into the talks and as yet we do not appear to have any clear picture of what is happening.
There has been suggestions of between EUR60bn-EUR100bn for the UK’s ‘Divorce Bill’ to start the process to leave but nothing has yet been decided.
Turning the focus towards economic data we have the release of UK inflation data on Tuesday followed by UK unemployment on Wednesday.
Both sets of data could cause volatility and I think we could even see GBPEUR rates hit 1.10 for a brief period of time by Wednesday.
However, I think the gains will be short term as investors will continue to be concerned by the topic of Brexit and I think this will continue to cause problems for Sterling Euro exchange rates
If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.
A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on [email protected] and I will endeavour to get back to you as soon as I can.