Yesterday the Pound to Euro rate breached 1.1450 and this morning the pair remain north of this level, which is one of the highest levels the pair have reached in the last 5-months. You would have to go back to June to see the Pound trading at this level and during that time the pair dipped below the 1.10 mark which goes to show how strong the Pound has been recently.
Over the last three months the Pound has gained almost 3% vs the Euro, with much of these gains being attributable to hopes of the UK and EU negotiators being able to agree on the terms of the Brexit. Despite some relatively impressive economic data and a resilient economy, especially in the face of so much uncertainty, economic data has taken a back seat in recent weeks especially as the Brexit dominates headlines.
There are no major economic data releases due out of the UK until Friday, so between now and then I expect to see the Brexit related updates to continue to be the main driver of currency value. On Friday the data released will be 3rd quarter Gross Domestic Product which holds the potential to influence the markets even if not to the extent Brexit updates can. The UK’s economic performance is being monitored closely as the markets are weary the effect the ongoing uncertainty could have on the UK economy.
One of the most recent updates came yesterday when Brexit Secretary, Dominic Raab said yesterdays Brexit meeting should get a thumbs up. The PM’s (Theresa May) Cabinet met yesterday for behind closed doors talks regarding how to resolve the outstanding issues, with the Northern Irish border remaining an area of contention.
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.