Sterling Exchange Rates Slip

The Pound weakened slightly yesterday against the Euro and held reasonably steady against the US Dollar following a very quiet day of economic data for the UK. The rest of the week remains very quiet for the UK and so the downward trend may continue which could present some decent opportunities for clients looking to sell Euros and buy Sterling. It does seem that the recent strong election results for UKIP have destabilised the UK’s political scene and that uncertainty has had a knock effect to Sterling exchange rates with Sterling weakening. A strong, stable political scene is vital for a strong currency and so the recent elections have been seen as bad news for Sterling exchange rates and with the Coalition Government under real pressure it seems like the results at next years general election is far from certain and it is this uncertainty that is causing investors to be a little bit more wary about buying Sterling and as a result the Pound is weakening.

Next week remains the main focus for all those trading GBP EUR with the key interest rate decision from the European Central Bank (ECB) which could see the central bank act in order to prevent the single currency economy falling into deflation. So, if you need to buy or sell Euros and would like to discuss the market outlook in more detail please do contact us on 01494 725353 or alternatively email us on info@currencies.co.uk