Euro to improve against the Pound in July

Brexit continues to dictate GBP/EUR

The Pound has continued to remain under pressure against the Euro during the course of the week finishing the week trading at the 1.13 level.

The EU summit caused the single currency to strengthen vs both the Pound and the US Dollar as a number of the EU countries came to more of an agreement as to how to deal with the migrant crisis.

The Pound is now close to its lowest level to buy Euros in 3 months creating some excellent opportunities to sell Euros into Pounds.

Brexit talks appear to have not really gone anywhere at the EU summit but as we have had so many meetings over the last two years and with the two year anniversary being celebrated last week that has not surprised me.

There is still clearly a lot of infighting in government about how the Brexit plan will go and a lot of key people are still at odds with each other.

Indeed, although we saw an upwards revision for UK GDP on Friday morning for the first quarter of 2018 this did little to help the Pound which highlights the ongoing problems caused by Brexit.

Typically an upwards revision would give the Pound a boost but it appears as though the markets is mainly concerned with what is happening politically in the UK at the moment hence the negative pressure on Sterling Euro exchange rates.

On Monday Eurozone unemployment data is due to be released and this has generally speaking been very strong for the continent so another positive release could see Euro strength to begin the week.

My prediction for next week is Euro strength as we will also see Eurozone Retail Sales on Tuesday and I think we could see this come out very positively.

If you have a currency transfer and would like a free quote then contact me directly and I look forward to hearing from you.

Tom Holian