Today could be a busy day for GBPEUR exchange rates with Mrs May giving her Conservative Party Conference speech at 10am. This speech will detail some of Mrs May’s plans for Brexit and could provide some real insight into what we can expect for Sterling rates moving forward.
Mrs May is still keenly defending her Brexit plans, enshrined in the Chequers texts. Boris Johnson attracted lots of attention yesterday dismissing Theresa May’s Brexit plans and providing the market with reasons for uncertainty. In a speech to members that was heavily over-subscribed, he attacked the Chequers plan and delivered a rousing speech that saw the Pound lose some ground.
Today Mrs May’s speech will definitely attract attention and those with a position buying or selling Euros will do well to ensure they are fully up to date with the latest news and information. A key feature of Pound exchange rates is Brexit related news and as well as Mrs May’s speech today, we also have the EU Summit on the 18th October.
Today is also important as we have the latest Services PMI, Purchasing Managers Index data, released at 09::30am. This represents the largest sector of the economy and can be a market mover. The figures are predicted to come in slightly lower which may see the Pound to Euro rate under some pressure.
At 10am we have Eurozone Retail Sales, a key indicator of consumer behaviour. This is expected to show a small upturn in activity, which would be supportive of the Euro. Based on the expectations for both this and the UK data, GBPEUR rates may well dip, potentially below 1.12 if the results come in as expected.
Sterling will mainly feel pressure from the UK Prime Ministers speech, all in all it could be a choppy day on GBPEUR rates. If you have a transfer to make, please get in touch to discuss the market and all of your options.