German GDP growth came out this morning better than expected with growth of 2.3% vs 2.2% which has caused the Euro to strengthen against Sterling this morning. Later today Eurozone GDP data is also out at 10am and this is likely to cause further movement for Sterling vs Euro exchange rates today.
Lats month’s Eurozone figures were the best in ten years and the expectation is for another set of strong data from the continent which could send GBPEUR rates below 1.12.
At the moment the Eurozone is outperforming both the UK and the US and the positive growth could signal an end to the current QE programme, which involves €30bn per month. If the European Central Bank hint at slowing down QE or bringing it to an end then this is also likely to strengthen the Euro in the longer term as the next policy after stopping QE could be to look at raising interest rates in the longer term.
Turning the focus towards what is happening in the UK our very own Foreign Secretary Boris Johnson will be taking centre stage later today to deliver a speech which will aim to unify both the Leave and Remain camp.
Owing to his previous history I think if he does not tow the policy line then we could see some volatility coming for GBPEUR rates later today so make sure you pay close attention to the speech.
We end the week with UK Retail Sales and as this is such a large revenue stream for the UK then a positive release could see Sterling rise on Friday morning.
If you have a need to make a currency transfer in the near future then feel free 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 compared to your bank or another currency broker.
Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on firstname.lastname@example.org and I will respond to you as soon as I can.