GBP/EUR exchange rates – What to look out for this week

We have had a fairly quiet start to the trading week for GBP/EUR exchange rates but this is no doubt a currency pairing that is liable to a sharp and unpredictable move at any time in the coming days and weeks.

Political news is the most likely to be moving this pairing in the short term, with Brexit talks on-going and numerous unexpected announcements happening in the past few weeks that have caused market volatility, this is a situation where anything may hit the wires that could move the rate either up or down depending on what the news is.

On top of this, for the U.K there are still murmurings and possibilities that Prime Minister Theresa May’s position is still in question, with various members of the conservative party seemingly looking to attempt to threaten her position as Prime Minister this is also a situation where news could break out at any moment, with this one however I would expect that any news would more than likely be negative for the Pound and lead to Sterling’s value decreasing, making foreign currency more expensive to buy.

In terms of economic data, Wednesday we have key inflation figures for the U.K – Expectations are for inflation to have dropped from 2.5% down to 2.4% which shouldn’t cause any major dramas.

On Thursday we have Retail Sales figures and expectations are for quite a drop off in Retail figures. This may cause the Pound a slight headache and lead to Sterling weakness if figures come out as expected, so be wary on Thursday morning at 09:30am if you have a currency exchange coming up.

All in all I still feel that the earlier factors in this post (Brexit and the Prime Minister) will have the most impact on rates in the coming weeks, if you are in the middle of a property purchase or sale overseas and you would like to be kept up to date with the very latest developments then I can help you personally.

Feel free to fill in the enquiry form below and I will be happy to get in touch to get an overview of your situation and to explain just how I will be able to assist you.

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