Pound sterling has risen against the Euro today, breaking through 1.14 and touching 1.1482 at the highest point today so far on the interbank rate. This is just below the previous high of 1.1527 we saw last week, and is some good for news for Euro buyers with pounds.
Earlier in the week sterling struggled with GBPEUR interbank rates reaching a low of 1.1290 on Tuesday. Much of the movement earlier this week was caused by some excessive volatility in the price of oil which caused the US dollar to rise in value, dragging GBPUSD lower, and weighing on the pound’s performance against other currencies.
The Euro has been weaker today on the poor PMI (Purchasing Managers Index) data from Europe, with France and Germany posting bigger declines than expected. German PMI data came in at a reading of 17.1 on a measure of 1 to 100 where anything below 50 represents contraction.Today’s news has been a trigger for a weaker Euro even though the data for the UK was also poor, in a sign of general economic malaise as a result of the COVID-19 pandemic and economic slowdowns we are witnessing.
Will GBPEUR Levels Keep Rising?
This week was always a busy one for GBPEUR levels with some much economic data for both the UK and Eurozone being released. Tomorrow is the latest news regarding Retail Sales for the UK which will provide further insight into the latest news for the UK economy and consumer spending.
Unsurprisingly the news is not expected to be great with month on month declines of -4% expected. Sterling has however today managed to avoid losses as the market is preoccupied with concerns over the Eurozone economic outlook. The PMI data for the UK was equally as poor as it was for the Eurozone, but the sentiment seems to be leaning towards greater concern over Europe.
This all points back to previous scenarios where we have seen the Euro weaker because of concerns over how debt will be issued in the future, and a high degree of concern over high debt levels of weak economies like Italy.
GBPEUR has proved its volatility again this week with expectations of a possible move lower back into the 1.12’s on the interbank rate being dashed and staging a small recovery so far today. If you wish to learn more about the upcoming events to move the market and what to look out for, please do get in touch.
If you have a transfer to buy or sell pounds or euros and wish to better understand future events that might change exchanges rates, please do get in touch directly with me to discuss further.