The pound has held steady against the Euro today after having seen a sharp fall yesterday after the vote on the Brexit bill in the House of Lords. GBP EUR fell to a low of 1.1635 earlier before making some small gains in afternoon trade. The House of Lords are creating some concern for the pound as in my view the markets are generally behind UK Prime Minister Theresa May to move forward and trigger Article 50. Rates are looking that much better for selling Euros at the moment although this could change very quickly.
Meanwhile the French elections dominate the headlines with scandal surrounding Francois Fillon as well as Marine Le Pen. This could be a very close contest in France and the implications for Euro exchange rates should not be underestimated. A Marine Le Pen win would likely see the Euro weaken considerably in this outcome. The question is whether or not France will make it a political hat trick after the Brexit vote and Trump win across the Atlantic.
EU unemployment held steady this morning at 9.36% whilst Consumer Price Inflation held steady at a respectable 2%. The healthier inflation figure will certainly give Mario Draghi and the European Central Bank something to talk about and there could be some new direction offered although most likely after the European elections.
EU retail sales are released tomorrow and could create some volatility for Euro exchange rates.
In the UK construction data from the Purchasing Managers Index arrived better than expected at 52.5 which highlights expansion in the sector. Anything above 50 indicates growth so this is positive for the pound. The services sector data is also released tomorrow and volatility is to be expected considering this sector comprises much of the engine room for the British economy.
Meanwhile British and French politics will continue to be the main driving forces for GBP EUR exchange rates.
If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist 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