Over the weekend there has been little change from where we left off on Friday. The talk of the lockdown easing is starting to become common place with small changes taking an impact, with the main desire to get children back in schools sooner rather than later. The talk about returns to normality could start to see the Euro gain back some of the lost ground.
There is a whole raft of data this week for both sterling and the euro, German economic sentiment data is expected tomorrow and this is very likely to provide a gloomy outlook from businesses. The Producer Price Index for the EU is also expected this week, it was already on a downward trend before COVID-19 and the fall is set to continue. Whilst this shows that the costs to consumers are getting cheaper, with inflation still rising it does raise concerns for early stage businesses that create raw materials. This is more of an example of some of the challenges that the EU is going to face in the coming months.
Monetary Policy Committee Statement this Afternoon
This morning, two Members of the Bank of England Monetary Policy Committee Andy Haldane and Ben Broadbent will provide a briefing on current economic affairs. This will be closely watched by the markets as they may provide a insight into the thinking of the committee, who have cut interest rates twice since the Coronavirus outbreak. Those cuts were made to protect the economy, with the likelihood that they will at some point in the future be reversed just as quickly as they were cut.
Any positive movement in the interest rate tends to boost the currency, so for sterling, a climb higher in the interest rate might be the push needed to see the GBPEUR rate back towards 1.20.
The other main factor to look out for is new developments on Brexit, the two negotiating teams return to the table today to discuss the trade deal post the end of 2020. The UK Government has been very clear in their reluctance to change the deadline of the negotiations despite what has gone on with Coronavirus so far this year. The talks haven’t stopped as they have been able to do much of it using remote technology but the main negotiators will be involved again this week as these are the official agreed dates for talks.
Any hint of positive or negative news could have an effect on the market so this is certainly one to keep your eye out for. If you’re looking for more information with regards to making a currency transfer then please don’t hesitate to get in touch.