Buying Euro rates are up at some new two month highs today following strong retail sales figures in the UK economy. Luckily for Euro sellers this rally on the Pound was muted thanks to comments over in America.
A mixture of cold weather, worries about further price rises due to the Pound’s relatively weak buying power for foreign goods, and potentially some very prudent planning for the Christmas period, has seen the largest single increase in UK retail sales figures in 14 years.
Euro and Dollar buyers alike can lay their thanks squarely at the feet of this news this morning. However, the gains even before the intervention of news from the US were lacklustre compared to how markets would normally react to such news. 1.17 was only briefly reached on GBP/EUR and such staggeringly positive news regarding such a large sector of the UK economy normally translates into sustained gains measured in whole cents.
We have become used to markets operating with this form of tunnel vision towards large political events such as the Brexit over economic data, however, the next big market mover is expected next Wednesday with the Autumn Statement in the UK.
As stated it was events in the US which managed to stop what should have been a larger rally for the Pound against the Euro.
Events in the US tend to have a direct impact on the Euro’s value, as USD/EUR is the most heavily traded currency pairing in the world, so any negative news in one currency tends to translate into the opposite effect in the other.
In this instance, hints from the FED that the US would not be raising rates at their latest December meeting allowed the Euro to benefit from lowered confidence in the Dollar.
Given that even positive news is not registering heavily on the currency markets for the Pound, and with the potential for the Autumn Statement to reflect the sudden and heavy borrowing activity announced by Theresa May’s new government, Euro and Dollar buyers may be wise to seize the recent gains made available with the surprise impact of the Trump Presidency before this is likely tested next week.
I strongly recommend that if you have a Dollar or Euro buying or selling requirement you should contact me on firstname.lastname@example.org whilst markets are largely inactive overnight to discuss a strategy for your transfer and the options open to you to secure any tempting levels which emerge immediately.
I have never had an issue beating the rates of exchang on offer elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency purchase later in the year and wish to secure these current levels ahead of what is expected to be a tumultous period.
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