The Pound vs the Euro has once again come under some pressure after beginning the week positively making gains from the Turkish crisis.
The Pound has started to drift lower even though UK Retail Sales came out better than expected earlier on this morning. We have also seen UK unemployment close to its lowest level on record at 4% earlier this week and typically both sets of economic data would usually give the Pound a boost against the Euro and as we have seen this is not the case which demonstrates how much pressure the Pound is under at the moment vs the single currency.
The main reason for Sterling’s weakness is that of the ongoing Brexit issue and speculation is growing that we could be heading towards a no deal Brexit which could cause huge problems for the Pound if this happens.
The negative news appears to be causing a big problem for investor confidence and in my opinion the main reason for Sterling’s weakness against a number of different currencies including the Euro.
With the UK parliament currently on recess we have not had much further news on the subject of the Brexit talks so it appears as though investors are focusing on the most recent talks held not that long ago which didn’t appear to go very well.
Tomorrow morning the Eurozone releases the latest Current Account data as well as Eurozone inflation data and both have been very positive recently so I think if we see another couple of positive results then this could lead to Euro strength towards the end of this week.
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Tom Holian firstname.lastname@example.org