UK manufacturing data came in slightly better than expected yesterday but GBP/EUR rates have remained fairly flat this week.
The Pound reached a high of 1.1473 today before retracting slightly but has struggled to make any impact above 1.15 against its EUR counterpart.
The catalyst for Sterling’s recent improvement was confirmation that UK & EU have all but agreed on the terms for a Brexit transitional deal. This positive spike has softened over the past week, with the long-term uncertainty around the UK economy still handicapping any major sustainable advances for Sterling.
Whilst the recent news has helped to alleviate many of the concerns that the UK was going to be left in a state of economic limbo following our separation, investors remain wary about the UK’s position post Brexit. A strong Eurozone economy is also helping to support the single currency and as such the EUR has found plenty of support around the current levels.
Despite a positive run of UK economic data the Pound cannot seem to break free from its shackles and with trade talks underway between the UK & EU, could we see further pressure on the Pound over the coming weeks?
With the Bank of England (BoE) giving indications that they may raise interest rates over the coming months, there is certainly a reason for those clients holding Sterling positions to feel more optimistic than in recent times.
However, with many unanswered questions and only fragile confidence in the UK economy, it may be prudent to protect any short-term GBP/EUR currency positions. This is not the first time the pound has threatened to make significant inroads against the other major currencies. Despite the fact there may be more substance to the recent increase in value, there are still many unanswered question, in terms of how the UK economy will be shaped and perform when it goes it alone.
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 protected] to find out all the options available to you ahead of your currency transfer.