Sterling found some much welcomed support during yesterday’s trading, making gains against the majority of major currencies.
The catalyst for this upturn was likely to linked to UK Services PMI figures, which came out at 54.5 and above the markets predicted results.
This boosted investor confidence in the UK economy, with the Pound benefiting as a result as investors moved funds into Sterling during the early part of Monday’s trading.
GBP/EUR hit 1.1260, whilst GBP/USD move back towards 1.39 at the high. Despite the single currency and the greenback finding some support in the afternoon, the Pound curbed any further losses following a disappointing end to last week.
GBP/EUR rates were also boosted by some poor Eurozone data, with Services PMI data falling from last month’s figure. Retail Sales data was also mixed and this helped to support Sterling’s as European trading lines closed.
Looking ahead and despite yesterday’s improvement for the Pound, I’m not anticipating a major upturn in fortunes for those clients with short-term Sterling currency positions to execute.
Sterling’s value is being driven, for the most part, by sentiment around Brexit. With negotiations seemingly progressing at a slow pace, it hasn’t helped investors’ confidence in the long-term and as such, those clients holding GBP should be looking for short-term opportunities in the market.
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 pressure back on the Pound.
There is some key data on Friday to look out for, in the shape of UK Manufacturing & Industrial Production figures. These are released alongside Trade Balance data and Consumer Inflation Expectations, so expect a volatile day for the Pound as we head into the weekend.
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.
Our award inning 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.
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