The Pound has surged in value today, making impressive gains against the majority of major currencies.
GBP/EUR rates hit a high of 1.1434 earlier this afternoon, which is some of the best levels we’ve seen over the past six months.
The catalyst behind today’s positive spike is most likely the reports, which confirmed that a Brexit transition deal has all but been reached.
The UK’s chief Brexit negotiator David Davis and his EU counterpart Michel Barnier, confirmed that a “decisive step” had been made and investor confidence in the UK economy immediately surged. This in turn boosted Sterling’s value, although the EUR did find plenty of support towards the close of European trading, moving back below 1.14.
Despite the initial positive reaction it seems as though investor confidence cooled, with some key issues still to be resolved. These include the Northern Irish border, which has proved a red herring up until now. Unless an agreement is reached over this, it is likely that we will see further negative reports surface, which in turn could put pressure back on the Pound.
It’s an extremely busy week, with a host of data releases that will be of interest to any clients with a GBP/EUR currency change to make. Tomorrow we have a host of inflation data for the UK, alongside Consumer Confidence for the Eurozone. Considering rising inflation has been a cause of concern for the Bank of England (BoE), tomorrow’s figures are likely to hold a lot of weight with investors.
Wednesday is another busy day with the official UK Unemployment rate, followed by UK Retail Sales figures and the latest BoE interest rate decision and monetary policy statement on Thursday. We also have Eurozone Manufacturing data released that day but it likely that the markets focus will be on the EU summit, which will dominate the majority of headlines. With the next phase of Brexit talks underway on Friday, during the second day of the summit, it is likely that there will be a lot volatility on GBP/EUR rates over the coming days.
As such, it may be worth taking advantage of the current improvement for Sterling, with no guarantees that the current trend will continue as we move through the week.
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 firstname.lastname@example.org to find out all the options available to you ahead of your currency transfer.