Both German Export & Import data came in better than expected which has given the single currency a further lift against the Pound. German Trade Balance data has also seen an improvement which as the Eurozone’s leading economy this is again good news for the Euro. Rates to sell Euros to buy Sterling are now at their best levels in 5 years so if you’ve been holding on to your Euros then it may be worth looking at taking advantage of these levels.
With Eurozone Industrial Production data due to be published at 10am this morning this could provide us with an indicator as to which way GBP EUR rates will move this week and Eurozone Trade Balance due on Friday. If Eurozone Trade Balance comes in as strong as Germany’s data yesterday then we could see a strong end to the week for the Euro.
A ZEW (Zentrum für Europäische Wirtschaftsforschung) survey showed business morale was much higher than expected and economic sentiment appears to have improved dramatically in October. The headline figure came in at 6.2 in October which was much better than expected and beat the estimate of 4. This was another reason for the Euro’s strength against the Pound.
The European Central Bank has confirmed that it will be tapering its current amount of QE which is due to finish by March as it expects inflation to rise in the Eurozone. This has also led to the Euro strengthening against the Pound. Indeed, towards the end of business last night GBP EUR rates dropped below 1.10 again as the Euro goes from strength to strength.
Whilst the political uncertainty continues for the UK this is causing a mass sell-off for the Pound and until we have some form of solution which is unlikely to come anytime soon we could see further drops for GBP EUR rates.
Those holding Euros for Sterling have now been presented with the best exchange rates in 5 years. Speak to our brokers today on 01494 725 353 if you are considering making a transfer and making the most of the recent highs.
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