UK Markit services data released this morning at 9.30am, which captures an overview of the condition of sales and employment showed a significant improvement from 54 to to 55.1. Tomorrow morning Governor of the Bank of England Mark Carney, is set to deliver a speech in Newcastle and as Markit services and GDP have both risen recently, the press will question whether an interest rate hike will materialise in August. At present the market is now pricing in a 73% chance and this is the reason why GBPEUR has increased throughout the day.
For euro buyers, it’s great news that the UK economy has improved in recent weeks, however on going Brexit negotiations are still a concern for clients that are looking to buy euros. This Friday the full conservative cabinet will meet at Chequers, the Prime Ministers countryside retreat to discuss the Brexit strategy moving forward. Some economists believe that the PM has summoned her full cabinet as she plans a super soft Brexit and the news will be received better than if she only summoned her war cabinet.
The problem I have is that key politicians like David Davis and Boris Johnson could try and sabotage the plan and put further pressure on the PMs position and ultimately sterling. For clients that are buying euros, I would keep a close eye on Fridays events as the unfold as at any point I expect the pound could experience substantial losses.
If you are buying or selling euros this week, month or year and I have not covered the currency pair you are trading, I would recommend emailing me with the currency pair (EURUSD, EURGBP, EURAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **