GBPEUR rates have continues to threaten new lows and currently sits towards the most expensive time to buy the single currency for 4 months.  Over the last 7 days GBPEUR rates have swung by almost a cent but have fallen by as much as 3 cents over the last 2 months. The Euro report below covers the next economic data releases in the short term and how these could impact the single currency. The following table shows the range of GBPEUR rates during the past month, highlighting the importance of timing your transfer correctly to maximise on your return.

Currency Pair% ChangeDifference on £200,000
GBPEUR1.85%€4200
The cost of the EURO near 4 month low

The cost of the EURO near 4 month low

GBPEUR rates have continues to threaten new lows and currently sits towards the most expensive time to buy the single currency for 4 months.  Over the last 7 days GBPEUR rates have swung by almost a cent but have fallen by as much as 3 cents over the last 2 months.

Yesterday Production Price index figures for the EU showed a slight expansion which helped the Euro strengthen but it was really the update from the Bank of England (BOE) which was the main driver in value. Sterling’s uncertainty both politically and economically has been one of the main drivers for the Pound’s fall in value. Saying that however the European economy is also showing signs of struggling.

Recent Euro area purchasing data for July suggests that growth could well remain weak in the second half of the year, and the blame was put straight on concerns about global trade by manufacturers. Another key indicator is that of business confidence in Germany. The IFO index, which is a key measure of German business optimism, declined for the eighth successive month in the last week.

European Retail focus for the Euro today

Today we have the release of Retail figures from Europe along with an update from the Service sector. Both are expected to show no change in comparison to the last release however I personally expect both to have climbed following the Football World cup last month. This suggests that Euro buyers today may wish to move first thing however sellers may be wise to wait for this afternoon in the hope of better levels as we end the week.

Next week European news is fairly light as most of Europe close in August for the holiday season. The biggest day is probably Tuesday with a number of updates from Germany but we also have the ECB Economic Bulletin from the European Central Bank (ECB) to watch out for on Thursday. German data is expected to show slight gains and traders will be looking at the release on Thursday for any hints to future policy change from the ECB.

Personally, I see GBPEUR rates driven by UK data near term and with the UK showing considerable signs of strain I generally expect GBPEUR rates to stay range bound between 1.11-1.13 over the next 7 days.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.