The Pound made some small gains during Friday afternoon’s trading session following some better than expected UK Manufacturing data.
Overseas order for UK manufacturing have picked up in recent months in part due to the low vale of Sterling which has made it cheaper to buy from the UK.
However, I think the gains for Sterling vs the Euro will be rather short term as consumer spending is seeing a slowdown at the moment which is often a big part of the British economy.
Confidence is still clearly very low in the UK with massive uncertainty and ambiguity caused by the the issue of Brexit.
A few months on from the triggering of Article 50 earlier this year and we are no further from where we started. We still do not know the cost of the Divorce Bill with figures of EUR60bn-EUR100bn being mooted.
Next week the topic of UK inflation will come back to the top of the agenda with the release of the latest Consumer Price Index on Tuesday. This will be followed by UK unemployment on Wednesday.
With inflation rising in the UK caused by the weakness in Sterling I think the figures on Tuesday will cause volatility for the Pound against the Euro so keep a close eye out on this data release.
UK unemployment has been very positive but the key release will be Average Earnings so if they are closer to inflation than last month could this be the catalyst to see the Pound hit 1.10 vs the Euro?
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.