According to figures published by the British Retail Consortium UK retail sales grew last month. Like for like sales were up 1.9% in January compared to 2012 and this was the biggest improvement since December 2011. This has seen GBPEUR exchange rates pick up to above 1.16 compared to Friday’s 15 month low of approx 1.14 as a buying price. One of the positive to take from this data release is that it could help to stave off recession in the UK. Indeed, with UK GDP figures only recently coming in at -0.3% if this quarter is negative which we won’t know until a couple of months time the UK could enter a triple dip recession.
The UK’s service sector also provided the markets with some good news this morning as firms confirmed that optimism is on the increase leading to a return to growth. PMI data came in at 51.5 from 48.9 in December and anything above 50 represents growth and therefore confidence. The report was the strongest since September and beat the forecast of 49.5. This again is welcome news for the UK but doesn’t mean we’re out of the woods yet. With high street chains HMV, Jessops and Blockbuster all entering administration the good news this morning could be brushed past very quickly.
Eurozone leaders are meeting today to discuss the EU budget for 2014-2020 and with GBPEUR rates having moved already by 6% since the turn of the year the confidence within Europe is plain to see. Indeed, French President Francois Hollande has claimed ‘the threat we face no is no longer the mistrust of the markets but that of the people.’ Erratic currency movements can be uncomfortable for the economies involved and with such a movement over the last few weeks the Euro’s strength could have an impact on their economy during this quarter as it make their own goods and services expensive for those needing to buy Euros.
I personally feel that although the UK has struggled and hence Sterling the crisis in the Eurozone is still there although in the short term seems to be have papered over. For more up to date information about Sterling Euro currency rates then feel free to contact me directly Tom Holian email@example.com As an experienced currency broker we aim to save you money compared to using your bank to transfer currency.