The Pound has rebounded from last week’s losses vs the Euro with some better than expected UK manufacturing data out yesterday. The Confederation of British Industry has confirmed that demand for British goods has gone up to a 2 year high during the last quarter.
With Sterling close to record lows vs the US Dollar during the last quarter it could be argued that owing to the low Pound it makes it more attractive to buy British goods from overseas and therefore the data has come out very positively.
However, this is not necessarily all good news as once the Pound does start to recover then I expect the data to be negatively affected so to me this positive manufacturing news is relatively short term.
This afternoon we have seen Sterling hit fresh 6 week highs against the Euro as it appears as though the House of Lords will not challenge the Brexit bill and this has provided the Pound with some much needed support against all major currencies including against the Euro.
Tomorrow morning there is a big day ahead with UK GDP data for the fourth quarter of 2016. Last year GDP was all fairly positive so if the data continues to come out well we could see further gains for the Pound against the Euro in the morning.
Eurozone inflation data is also due to be published at 10am and with inflation still not under control on the continent even though there has been a huge amount of money pumped in by the ECB via Quantitative Easing I think we could see a positive day for the Pound to Euro tomorrow.
If you would like a free quote when buying or selling Euros compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian email@example.com