GBP/EUR rates have dropped back below 1.14 this morning, with the Pound’s positive trend cooling over the past 24 hours.
Those clients holding Sterling positions would have been watching last week’s movements with increased interest, as the Pound made significant gains across the board.
Sterling’s value was boosted against its Euro counterpart, following a strong run of UK economic data. Positive Unemployment figures, strong Retail Sales numbers and an indication from the Bank of England (BoE) that they may look to raise interest rates over the coming months, all helped to drive investor confidence and the Pound benefited as a result.
This positive sentiment helped pushed GBP/EUR above 1.15, which were some of the best levels seen in the past 12 months.
However, as so often has been the case in recent times this spike has been difficult for the Pound to sustain. Whilst there is no doubt Sterling has found a foothold against the EUR since the turn of the year, it is struggling to make any sustained impact above 1.15 against the EUR.
This slight downturn since the start of the week has come about despite this excellent run of economic data and also an agreement in principal, regarding the stats of the UK during the Brexit transitional period.
Whilst there are still some details to be ironed out, it seems as though the UK will have full access to the single market & customs union. This will help to alleviate any immediate concerns regarding trade deals outside of the single bloc. It will also give the UK a further two years grace, in order to put measures in place to soften our exit, when it finally comes to “cutting the cord”.
Whilst this news was taken as a huge positive and allowed the Pound to break through 1.15 against the EUR, it has not manged to sustain this improvement and to me this is the key point.
Whilst the Pound is able to find support in short bursts, the current conditions and long-term market confidence in the UK economy remains fragile.
This is why clients who have a GBP currency exchange to execute should be looking for short-term market opportunities in my opinion, rather than gambling on longer-term improvements.
If you have an upcoming GBP or EUR 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@example.com to find out all the options available to you ahead of your currency transfer.