Sterling starts to gain – 1% spiking?

 Today sterling has spiked up over 1% against the euro creating an additional €2,580 on a £200,000 transfer.  This has been down to 2 factors, firstly PMI figures for the UK came out stronger than expected and also ECB held their interest rates on hold.

Interestingly again the head of the European bank in his speech following the interest rate announcement took the opportunity to talk down the euro. Again assumptions are that this was to lower the euro as it assists with import/exports.  I personally think that sterling could climb further against the euro as data from the UK continues to show improvements. This however will probably only be at face value. Figures released are for the previous months activity and depending on whether they improve or not generally drives a move in the price of sterling. In this case as we are completing a comparison again December, a month when snow almost closed the country, so improvements are very much expected and so in my option should be pound strength.