GBP/EUR rates are floating around 1.12, with Sterling still struggling to make any significant impact against its EUR counterpart.
The Pound came under pressure early this week following poor UK Services data, which came our under market expectation. This inadvertently boosted the EUR’s value, which has already been well supported of late.
Some mixed Eurozone data helped curb any significant losses for GBP but as per the recent trend, every time the Pound has taken a step forward it has hit a wall of resistance and retracted almost as quickly.
With so much emphasis on Brexit negotiations at present, it was always likely that this rather than individual economic data releases are going to continue to drive market sentiment and ultimately investor confidence over the coming months.
The media seems to be cementing this negative perception, with any positive report followed by two or three negative ones and this is one of the main reasons the Pound is struggling to make any sustainable gains against the Euro.
Of course, the Eurozone economy itself has outperformed almost every expectation over the past 18 months, with the European Central Bank (ECB) and its president Mario Draghi lauding their current monetary policy programme as its saviour.
When you look at the UK & Eurozone economies and the current prosperity and outlook for each, it is easier to understand why the pound is facing an uphill struggle at present.
With UK economic data at a minimum this week, tomorrow’s Eurozone Gross Domestic Product (GDP) could hold extra week. Any figure above the 0.6% expected growth could put further pressure on Sterling
If you have an upcoming Sterling 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.
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