The EUR has started to lose some ground against both Sterling and the USD of late.
GBP/EUR rates spiked during the early part of the trading week, with the pair hitting 1.18003 at the high. Although he pair have retracted slightly, the EUR has come under pressure following a more positive long-term outlook for the UK economy, as outlined in Wednesday’s Autumn budget. This may surprise many considering the amount of additional debt the UK will rack up in the period leading up to 2021 but with the short to medium-term outlook of the Eurozone looking far gloomier, could we see the EUR continue its slide over the coming weeks?
The current levels have provided those clients holding Sterling with some of the best rates they’ve seen in the past few months. This has come in line with a strong run of economic data for the UK, in particular last week’s UK Retail Sales figures, which came in well above market expectation.
We also had UK Prime Minister Theresa May speaking at the CBI conference earlier this week and some of her comments regarding our upcoming Brexit were particularly poignant. She tried to calm fears amongst businesses that feared a major change in market conditions following our exit from the EU and she mentioned a possible temporary agreement being put in place, which would run beyond the two-year deadline once Article 50 was triggered.
This boosted market confidence in the UK economy and the Pound, which in turn caused the EUR to weaken.
What we’ve seen is a shift in market perception and as such I feel the EUR may have hit its peak in the short-term. Therefore, those clients holding the single currency should look to take advantage of the huge improvements seen, in particular against Sterling and not gamble on another aggressive spike for the EUR.
If you have an upcoming GBP or EUR currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.
If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, 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 Matt. Alternatively, I can be emailed directly on firstname.lastname@example.org