If you’re looking for a Euro Pound forecast, it may interest you to know that, this morning, UK second quarter Gross Domestic Product (GDP) figures released came in worse than expected and showed a decline of -0.2%. This is the first contraction we have seen in UK GDP since 2012. This shows the fragility of the UK economy and the ongoing toll that Brexit uncertainty and the global slowdown are having on the UK.
On the back of this news, we have seen the Euro/Pound interbank exchange rate reach a high of 0.9290 today. The last time this level on the interbank exchange rate was recorded was over two years ago, on the 29th August 2017.
Sell Euros latest: Is the UK heading for a recession?
With the weaker UK data being released, there is a question mark over whether the UK economy may enter into a technical recession. This is defined as two or more quarters of consecutive contractions. It may not be a total surprise if we did see further weakness in UK data, as a number of businesses stockpiled their supplies ahead of the original 29th March 2019 Brexit deadline.
UK business confidence data also released today for the second quarter of this year showed a marked fall to -0.5%, against a forecast -0.3%. This figure shows the change in the total inflation-adjusted value of capital expenditures made by companies in the private sector. The negative figures show that businesses are reducing their expenditure in the UK, on anticipation of weaker demand for their goods or services.
The market will now be looking towards next week’s UK employment and inflation data. Any reduction in these could continue to weaken the value of the Pound, and hence the Euro/Pound interbank exchange rate could continue to rise.
If you are waiting for the Euro/Pound interbank exchange rate to rise further, then please let me know and I can keep a close eye on the market for you and alert you when it moves accordingly. Please contact me directly by email here.
If you do not have the funds available now, we can always secure your currency on a forward contract, allowing you to secure an exchange rate today for a future payment. This requires a 10% deposit with the balance being paid on a date of your choice, up to one year ahead.