- GBPEUR trading at 1.17
- Euro consumer confidence shows sharp falls
- CBI Industrial Trends Survey shows stronger confidence
- Will the Pound continue its upward trend?
Pound to Euro at 2 week high – Will the trend continue
Following on from the Brexit saga, the impact of Brexit, or at least the vote itself, has so far caused limited shock to the British economy. Much of the Brexit doom and gloom has arguably been overplayed, at least in the short term anyway.
Sterling is now at a 2 week high against the Euro. Data release after data release has so far painted a softer consequence of the vote which has seen an uprise in the Pound’s value. The latest CBI Industrial survey which measures business confidence in certain sectors shows confidence is only down slightly following the Brexit vote.
Last week’s retail sales and GDP estimates also contradicted the impact of Brexit, however it may be some time before we see the true impact of the UK’s vote to leave the EU.
Will the Pound continue to improve?
I personally believe that GBPEUR exchange rates will continue to improve as long as economic releases contradict post-Brexit doom. Whilst the UK remains in the Eurozone there is still plenty of time for investors to buy into the Pound. I do however see this rally being short lived, once news of Article 50 comes to light the UK will enter a new stage of uncertainty. Do you need to buy Euro’s in the near future and would like more information on the best time to exchange? You can email me at email@example.com. There does remain opportunities to buy the Euro in the weeks and possibly months ahead and I’d be more than happy to assist you with any questions.
The GBP/EUR rate sits above 1.165 for the first time in nearly 2 weeks as German Markit services PMI data falls well short of the expected result along with the EU Markit Manufacturing PMI also falling short for August. This comes as the German, French and Italian Prime minister all pledged that the Brexit vote will not weaken the EU bloc. There is no doubt that the Euro has done very well off the back of the UK Referendum however as the dust settles it appears some of the Eurozone’s problems could once again become main stream news.
The banking crisis in Italy and Greece are flaring up once more, this time more in Italy as the country is set to go to their own Referendum shortly. The whole nation will get the chance to vote on weakening the senate’s powers and the current Prime Minister Matteo Renzi has somewhat put his position on the line. Renzi if he doesn’t win has previously stated he may well resign; this would be the last thing Italy need when there is already a critical banking crisis.
Confederation of British Industry Survey reveals good news
Whilst normally a fairly minor data release today this business sentiment data proved very handy for Sterling. The survey asks senior executives for their opinions on the trends for outputs and price changes. Whilst the figure was expected to be down on July’s it was substantially higher than the level expected. Since Brexit the business sentiment data has been one of the main reasons for Sterling’s fall. In my opinion I think we have reached the bottom of Sterling and whilst it might not be a quick recovery the rate could start to rise.
Working for an established brokerage allows me to achieve the best rates of exchange for my clients. I am also able to assist with the timing of a transaction to make sure you get the most for your money. If you would like some information with regards to a currency requirement please email me at firstname.lastname@example.org.