Sterling under pressure against the Euro (Tom Holian)

Euro to Pound Rate Dips following German Lockdown

On the weekend there were reports that 100,000 people were marching across London to protest about not being allowed a final vote on the Brexit topic after the vote in the House of Commons last week.

Both the leaders of the Green Party and the Liberal Democrats were in attendance but clearly Theresa May and Jeremy Corbyn avoided the event.

More pressure may be mounting on Theresa May as there are concerns from the Defence Minister if he does not receive £20bn which is what has been suggested that they need.

All this in fighting is not helping the Conservative party and is causing the government to face a bit of instability and this is never good for the currency involved in this case the Pound.

The Pound did make some gains towards the end of last week when the Bank of England voted in favour of keeping interest rates on hold at 6-3 which was the first time we have seen 3 members of the MPC vote for a rate hike.

With UK Retail Sales coming out a lot better than expected recently this was one of the reasons given by the central bank for a change in the voting pattern.

On Wednesday Mark Carney will be addressing the markets to reveal the reasons why monetary policy stayed the same last week and he could give us some insight as to what the Bank of England may look at doing going forward.

Later in the week Consumer confidence will be announced followed by the final revision of UK GDP figures on Friday.

Eurozone inflation data will be released on Friday morning and this could influence what the European Central Bank will do concerning monetary policy. With the ECB having announced an end to their QE programme recently any changes to inflation could cause some volatility for the Pound vs the Euro at the end of the week.

Having worked in the foreign exchange industry since 2003 I am confident of being able to save you money when buying or selling Euros compared to using your own bank. If you would like a free quote or further information then please email me directly and I look forward to hearing from you.

Tom Holian [email protected]