The GBP/EUR exchange rate had a busy day yesterday, as the we saw the pair hit a 2-month high along with seeing a slight sell-off in the afternoon owing to Brexit related updates.
The inflation figure for the UK in August unexpectedly jumped to 2.7% after the markets were expecting to see a figure of 2.4% released. This boosted the Pound’s value as the chances of further interest rate hikes from the Bank of England are supported by this data release, which is considered a GBP positive.
Then in the afternoon after GBP/EUR had hit it’s 2-month high , getting closer to 1.13 at the interbank level we saw much of the earlier gains reversed and was because the UK’s Prime Minister, Theresa May rejected the EU’s most recent proposal regarding the Northern Irish border. This matter is becoming a contentious issue that neither side seems prepared to give any ground on, and I expect it to continue to drive the Pound to Euro exchange rate when there are updates.
As of yesterday evening there is a 2-day informal meeting in Salsburg, Austria between the EU members and I expect Brexit to be a talking point. Any updates are likely to result in currency fluctuations so it’s worth being aware of this if you’re planning on making a currency exchange in the short term future.
Later this morning there will be a release of data from the UK in the form of Retail Sales data. Drops from the previous months figures are expected and do get in touch if you wish to be updated regarding this release.
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 email@example.com and I will endeavour to get back to you as soon as I can.