After a slide for the pound against the Euro yesterday following the weaker mortgage approvals data sterling is seeing a bounce this morning. The Euro is under pressure as the Deutsche Bank story is not going aware with sharp falls in the share price again this morning. The mammoth bank which is heavily exposed in derivatives may need some sort of state aid as it is simply too big to fail. Clients looking to buy Euros may see some better prices on the back of this story.
The issue is that Angela Merkel has made clear that it will be down to the markets to come to the rescue rather than the government and this is what is causing the uncertainty. This is now keeping real pressure on the Euro and there is unlikely to be a quick fix. Any reassurance from the German government would certainly help the Euro and this may have to be forthcoming.
UK GDP is released later today and could create more volatility for sterling exchange rates. It represents the period in the run up to the referendum on EU membership and whilst not as important as after the event it still does paint the economic picture. Next week’s National Institute for Economic and Social Research (NIESR) GDP numbers could be highly important as this precursor to the official numbers for this quarter will represent the post Brexit period and this is what the markets are most interested in.
Clients who are buying or selling Euros are seeing a very volatile period at the moment which is unlikely to change any time soon. The Brexit jitters are keeping the pressure on the pound. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on firstname.lastname@example.org