Over the past few months the highest that GBP/EUR has traded (at the mid-market level) has been 1.1301, and the pair at the time of writing are currently trading at 1.1265.
Sterling has experienced improved performance in recent weeks as the hopes of the UK government preparing a new Brexit offer to the European Union are increasing after a recent report from Bloomberg. The offer is reported to alter the UK’s previous stance on the Northern Irish border issues and hopes to seal the deal within the next month or two. The Brexit deal is expected to be in place by next month, after the original plan was for the deal to be done by this month.
The Brexit and the agreements (or lack of agreements) in place by the time the UK leaves the EU is the main driver of currency fluctuations at the moment. It’s hard to read the markets as all it takes an unexpected update to move the markets as we saw recently after comments from Michel Barnier, the chief Brexit negotiator from the Brexit side. The issue with the border covers whether there will be police and customs checks there and how disruptive it will as Northern Ireland leaves the EU.
Aside from the Brexit related updates their are a number of economic data releases this week that could result in movement for GBP/EUR. Tomorrow at 9.30am there will be Services PMI released which could be a market mover for the Pound as the sector is the UK’s most important, and it covers two-thirds of the UK economy.
Aside from tomorrow morning the next potential market mover will come on Friday when the US Non-Farm Payrolls and US Employment data is released. This is key as the EUR/USD is the most traded pair so a major move for either of the two currencies can result in a big move for the other, so at 1.30pm on Friday it’s worth following the markets in case of a spike in the Euros value.
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.