Poor UK economic data and Brexit uncertainty causes the Pound to fall against the Euro

UK Prime Minister Theresa May is running out of time

The latest news from Brexit has continued to dominate what is happening to the Pound vs the Euro at the moment.

Sterling Euro exchange rates are now close to their lowest levels to buy Euros since November 2017 and I think we could see further losses ahead for the Pound against a number of different currencies.

UK economic data published earlier this week in the form of inflation and retail sales both fell below expectation and this has led to a fall in confidence in the value of the Pound.

If inflation rises then this would typically provide evidence in support of a rate hike but as inflation is starting to slow then the Bank of England may not now hike rates next month as previously expected.

Indeed, with retail sales published on Thursday coming out much worse than expected then this shows a problem for the high street and with consumer confidence also likely to be negatively affected I would be amazed to see a rate hike when the Bank of England meet on 2nd August.

Therefore, this is why I think there will be further problems coming for the Pound vs the Euro.

Turning the focus back to the Brexit issue the new Foreign Secretary Dominic Raab wants to try and get the talks moving quicker after he replaced David Davis recently.

At the moment both sides appear to be planning for a ‘no deal’ Brexit which neither have claimed that they actually want and the talks do not appear to be progressing in the right direction for either side.

The uncertainty as has been demonstrated since the referendum two years has plagued the Pound and I cannot see things improving in the short term so if you’re planning to buy Euros it may be worth organising this in the very near future.

If you would like to know more about the best time to make a currency transfer, contact me directly using teh@currencies.co.uk for further insight into factors impacting Euro rates at the moment, I look forward to hearing from you.