We have just had the release of Retail Sales figures for the U.K a short while ago and unfortunately figures have failed to impress and fell short of analysts expectations.
Usually this would have hit the Pound fairly hard and we would have had Sterling weakness, however it does appear that we are currently witnessing a bout of positive vibes surrounding Brexit negotiations and progress and this is currently giving the Pound a bit of a boost.
My opinion at present is that I would not be surprised to see Sterling exchange rates have a good year, there is of course the potential banana skin that Brexit talks may suddenly take a turn for the worse and at that point the Pound may struggle, but in general things to appear to be ticking along fairly well, and due to this fact alone I think Sterling will reap the benefits of this.
The European Central Bank do have a part to play and should they move to completely cut back on their QE program and start to make more positive economic decisions then the Euro could still continue its fairly good start to the year.
One possible setback for the Euro is the Italian elections which are due on 4th March, these should bring uncertainty for the Euro as there is still quite a bit of uncertainty over the potential victor, so keep your eyes peeled for more news throughout February for this.
If you have a Sterling/Euro exchange to make (either buying or selling) in the coming days, weeks or months and you would like assistance not only on the timing of your transfer but also with achieving the very best rate of exchange too then I can help you personally.
Feel free to get in touch with me (Daniel Wright) by emailing me on [email protected] and I will be more than happy to get back to you. Having now worked at the same foreign exchange brokerage for over a decade I am well placed to assist you and will be more than happy to help