The current market for EUR transfers into GBP is providing the best opportunity since last September to consider making a purchase of Pounds. More on the political factors impacting this, with an outlook on economic data coming out for the rest of the week in today's Euro report. The table below shows the potential difference in Euro return you could have made when selling £200,000.00 at the high and low points of the past week.
|Currency Pair||% Change||Difference on £200,000|
In April, GBP/EUR rates were testing 1.16, the highest levels seen this year and it was only last week that the pairing temporarily dropped below the 1.10 threshold.
This means that a well-timed transfer within that period would have achieved around £9,400 more, on a transfer of €200,000, which is a considerable difference in a relatively short space of time.
This current climate has primarily been influenced by the UK's decision to leave the EU, but the longevity of the currently levels is starting to come under question, with growing global trade tensions putting pression on the Eurozone and indications that the UK is in fact edging away from a ‘no-deal’ Brexit scenario which is increasing sentiment in the Pound.
Despite the claims yesterday that the German approach to Brexit negotiation could be transitioning, France’s European minister Nathalie Loiseau in an interview with the Evening Standard, dismissed UK Prime Minister Theresa Mays’ Chequers plan whilst accusing the UK of trying to redefine the EU’s “basic principles” and insisted that the EU will not adjust its rules to accommodate a post-Brexit Britain.
Loiseau also went further to condemn a report that the French President Emmanuel Macron was warming to the Prime Ministers exit proposal.
Whilst these comments provide a stark insight into the current viewpoint surrounding Brexit, for one the UK’s closest partners and hence highlights the difficulties that will be faced over the next couple of months, they do seem in contrast to recent suggestions that the chance of a ‘no-deal’ scenario is only 25% and attitudes towards the UK’s separation from the EU are changing.
Industry sector Market PMI data this week provided relatively little change and showed continued expansion for the Eurozone as a whole, despite a slight decline from the previous figure for German services.
Investor attention will turn to European Central Bank member Lautenschläger’s speech later this afternoon, who will provide information surrounding current European economic sentiment and also to Friday's Eurozone GDP release for Q2.
The Gross Domestic Product data is expected to show no change, however any deviation in the result from the previous could see EUR movement going into the weekend so clients with an upcoming transfer could benefit by considering their position prior to the release.
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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