The Pound has hit its best rate to buy Euros since mid-November and Sterling continues to make some very positive headway against a number of major currencies.
UK employment figures published earlier this week showed a very strong figure with the data the best in over 32 years for the UK. Many concerns still exist over the potential of what will happen with the Brexit talks in the next few weeks but clearly the jobs market is managing to remain very strong at the moment.
With MPs having voted down the most recent Brexit deal on offer early last week by a majority of 230 votes, it appears as though whatever Theresa May is able to negotiate in the short term will not get voted through by the House of Commons.
This is the reason for the Pound’s improvement against the Euro as it appears as though the likelihood of a no deal Brexit is minimal and the chances are that we could see Article 50 being extended and this has been taken well by investors in the Pound.
Ex-Chancellor George Osborne has claimed that delaying the UK’s exit from the European Union is now the most likely option to happen and this is why the Pound has improved which is good news for anyone looking to buy Euros at the moment.
Poor Eurozone economic data negatively impacts the Euro
This morning we have already seen some mixed data from Germany, which is the powerhouse of Europe. German Services data showed an improvement but Manufacturing data showed a fall. This was also compounded with the news from the Eurozone that Services and Manufacturing has fallen in the bloc and this is why I think we could see GBPEUR exchange rates hitting 1.15 during today’s trading session.
This afternoon the European Central Bank will publish its latest interest rate decision and any suggestions by ECB President Mario Draghi that the Eurozone is under pressure could be another catalyst for sending the Pound upwards vs the Euro.
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