Those clients holding EUR and looking to buy GBP had a prosperous Wednesday, as the single currency made gains of almost two cents on the interbank rate against its sterling counterpart by the close of European trading.
|Currency Pair||% Change in 1 month||Difference on £200,000|
The EUR benefitted from the sharp GBP sell-off discussed in the previous section of this report, with investors quick to react to the growing uncertainty surrounding Brexit.
EUR sellers were one of the main benefactors of sterling’s dip, which struggled across the board, as the UK’s Brexit strategy was once again called into question.
This positive spike for the EUR went against the trend of recent weeks, with the EUR struggling to sustain any gains against the pound since the turn of the year.
Based on the interbank rate, €100,000 was worth approximately £1000 more at yesterday’s highs, compared to a point last week.
Looking at Brexit and its impact on the EUR and investors will be keeping a close eye on developments today, with the EU summit likely to dominate many of the headlines.
EU leaders will have to unanimously agree on any extension to Article 50, with President of the European Council Donald Tusk likely to stipulate that any extension will only be granted, if UK MP’s vote in favour of the current Brexit deal.
This means that there is a lot at stake over the coming days and whilst Eurozone growth forecasts remain dovish for the remainder of 2018, yesterday’s upturn for the single currency proves that the EUR still has the ability to make an impact against GBP, even around the current levels.
Looking ahead and todays’ Eurozone Consumer Confidence figures have in the past had significant impact on the EUR value. Friday also has key economic data, in the form of Manufacturing & Services PMI figures.
These, along with inflation data which has in the past impacted GBP/EUR value, so those clients with an upcoming currency exchange to execute will be monitoring these releases closely.
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