There are a number of economic data releases due out today which will have an effect on Pound to Euro exchange rates. In the next hour we see the latest set of Industrial and Manufacturing data due out with expectations of an improvement compared to the month before. At the same time the latest UK Trade Balance figures are also published.
During this rather uncertain period I think the data could cause some concern for the Pound as it will include the run up to the election.
Following this the latest NIESR GDP estimate for the last three months is also set to be released. The previous three months showed growth of 0.2% so anything lower could see the Pound fall vs the Euro.
However, arguably the biggest movement of the day could be caused by the latest speech due to be made by Bank of England governor Mark Carney.
He has been rather mixed in his recent statements as a few weeks ago he said the UK was not ready for an interest rate hike to come but more recently he has said that the topic of interest rates may come on the agenda. If his comments reflect the most recent statement this could help the Pound to make gains vs the Euro in the afternoon so keep a close eye out for what he says and the tone used.
The market for Sterling vs the Euro is clearly under a lot of pressure caused by the instability as to what is happening with the Brexit negotiations and until we start having any positive discussions any real gains for the Pound vs the Euro could be limited.
Therefore, if you’re in the process of buying a property in Europe over the next few weeks it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked for one of the UK’s leading currency brokers since 2003 I am confident not only of being able to offer you better exchange rates compared to using your own bank but also help you with the timing of your transfer.
If you would like further information or a free quote then email me directly and I look forward to hearing from you.
Tom Holian teh@currencies.co.uk
