Sterling has made some modest gains against the Euro during today’s trading session, despite some disappointing economic data being released this morning.
Retail Sales within the UK dropped off during April by -3.1%, which is the sharpest drop seen in over two decades. I think that there hasn’t been a massive move for the Pound because markets are generally attributing the drop to the poor weather and also the high inflation levels at the moment.
If the poor economic data continues though I am expecting to see the Pound drop-off throughout the year. At the moment we’re seeing some very poor data with UK economic output hitting a 5-year low recently, and Manufacturing PMI hitting a 17-month low.
Markets haven’t reacted much as I believe the poor weather is being blamed on the weak data, but once there isn’t a viable ‘fall guy’ I think there will be a market reaction.
Tomorrow could be busy for GBP exchange rates as there is a Bank of England meeting around mid-day. Previously there were expectations of a rate hike tomorrow. This boosted the Pound dramatically when the talk of it hit the headlines although since then the raft of poor data has softened the Pound’s value.
I think that those with an upcoming currency requirement involving the GBP/EUR pair should be aware of tomorrow’s main event, and if you would like to discuss it with me do feel free to get in touch.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on firstname.lastname@example.org and I will endeavour to get back to you as soon as I can.