The pound has struggled to perform this week trading in a very tight range against the single currency. Rates for GBP EUR have fallen to 1.1180 this morning as the markets focus on a speech today from Chancellor of the Exchequer Philp Hammond. The speech is likely to be a very important speech ahead of key trade negotiations which are expected to start later this month. The French economy minister Bruno Le Maire has made clear his views that Britain is not to have a free trade deal for financial services and there is little chance of doing so. Due to the size of the financial services sector and its huge contribution to Gross Domestic Product means this is a very serious issue the British government faces.
The chancellor is expected to make the case that it is very much in both the the British and EU’s interests whilst highlighting that the EU has in fact looked at including financial services in a trade arrangement with the US.
For the time being Brexit continues to hold back the price of sterling ahead of key negotiations which will tackle the future trading relationship between Britain and the EU later this month. This lack of certainty has presented clients looking to sell Euros with an excellent opportunity to convert Euros into pounds.
UK manufacturing and industrial production numbers are released on Friday and could make an interesting end to the week. Clients with a US dollar requirement could also see a volatile day on Friday with the release of US non-farm pay roll numbers. A strong number in the US could see the dollar strengthen and a jump higher for USD EUR.
For more information on Euro exchange rates and how we can assist with your currency transfer then please get in touch with me at [email protected]