Sterling has held its been position against the EUR of late but so far has struggled to make any impact above 1.15.
The EUR continues to find support around this threshold, as it has done every time it has been tested over recent months.
There is no doubt the Pound has gained a foothold following a strong run of UK economic data and progress in Brexit talks but is the Pound likely to break through the current levels any time soon?
Whilst it is impossible to predict exactly how the markets will evolve, any clients with an upcoming Sterling currency exchange to execute should be wary about assuming that the Pound’s upward will last. Despite the UK and EU agreeing on terms for a transitional period ahead of the UK’s inevitable Brexit, this agreement has simply kept the ‘wolf from the door’ for another couple of years.
There are still many unanswered question regarding the UK’s future trade status both with our European neighbours and globally and as such I feel the Pound is still likely to be handicapped over the coming months, at least to some extent.
Looking at the Eurozone itself and its economy continues to perform admirably, with the European Central Bank (ECB) likely to tie up their current monetary policy programme before the end of this year. If this dopes happen it is a show of strength and again it means the ECB no longer feel the Eurozone economy need propping up.
In the short-term UK data tomorrow in the form of Manufacturing & Industrial Production figures is expected to be mixed, so it unlikely the Pound will receive much support following these releases, unless of course they come out above the markets predicted result.
If you do 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.