The pound to euro exchange rate has struggled to exceed 1.13 in recent weeks, with 1.1301 being the high point of the markets over the past 6-weeks demonstrating the resistance for the pair.
This week could prove busy for the pound, mostly owing to the large amount of economic data due out that could influence the pound’s value. Tomorrow there will be Construction PMI figures released, and I expect the markets to follow this release closely as they are forward looking as opposed to backward looking. Then on Wednesday there will be arguably one of the most important data releases as the information covered will be for the Services sector.
Services data is arguably more important that the Construction data expected out tomorrow as the sector covers around two-thirds of the UK economy. The data therefore has greater scope to influence the GBP/EUR exchange rate, and if you wish to plan around this event it’s worth making us aware sooner rather than later so we can help. If you register your interest I can also get in touch after the data release in case there’s a major movement.
There has been downward movement recently for the euro, as the issues surrounding the Italian Budget have caused concern. There have been disagreements between the two parties that form the Italian Coalition Government and this is causing concerns, with the Budget deadline being extended. The euro weakness has resulted in the pound to euro rate hitting levels close to its highest levels in the past 6 weeks. Today we’ve seen the pair climb as high as 1.1286, and the highest level in the past 6 weeks has been 1.1301 which demonstrates the pound’s current position.
Aside from the data releases outlined above, I think that those following the pound should pay close attention to the outcome of Boris Johnson and Theresa May’s public spat after Johnson recently came out and made very disparaging remarks regarding her Brexit plans.
It’s harder to follow Brexit related updates from the political side so reacting quickly to the news is key, and that’s where we come into the frame, so do register your interest with me if you wish to be kept updated. Use the form below to request further information, I’ll be happy to get in touch personally and discuss your needs.