The Pound to Euro mid-market level is currently sitting at an almost 2-month high at the time of writing, with the pair finding some support at the 1.1900 level so far this morning.
During earlier trading we saw the pair climb as high as 1.1935, which is less than a cent and a half from the highest level of the past year which is also the highest level seen in over three and a half years.
UK Economy Is Growing Faster Than Both Germany and France
The upward momentum for the pound this week begun as it was announced that the UK is the 3rd fastest growing economy within the G7. Only the US and Canada are growing at a faster rate with Germany and France both trailing the UK despite the uncertainty for the UK economy with Brexit uncertainty still limiting upside.
Through 2020 the negotiations between the UK and other trading blocs, especially the EU is expected to continue to drive the Pound’s value. Since the Conservative Party won a majority in the general election in December there has been what the markets are calling a ‘Boris Bounce’ as optimism surrounding the UK economy moving forward has increased, and this has been reflected in the pound’s value.
Today Sterling exchange rates could be influenced by UK Prime Minister Boris Johnson’s reshuffling of his cabinet, which will take place later today. Depending on how he decides to reshuffle we could see market movement as it could determine the outlook for negotiations throughout the year, so it’s worth keeping an eye on this if you’re watching the exchange rates.
Economic data due out of the UK is very light for the remainder of the week, so it’s likely to political updates could remain the key driver for Sterling exchange rates.
If you have an upcoming currency transfer and would like to know more on the factors influencing GBP/EUR exchange rates, you can contact me directly, Joseph Wright, using the form below.