GBP EUR Rallies Towards 1.14 (James Lovick)

The pound has seen a volatile period after making good gains this week against the Euro. GBP EUR now sits at 1.1344 ahead of industrial and manufacturing production figures released tomorrow. The data has performed well in recent months as a result of the weakness in the price of sterling which is of course good news for British exporters.

The November figures are expected to show a jump higher on Octobers data which could help see the pound rally on the back of a strong number. UK data is generally lighter this week and focus next week will centre on the UK Consumer Price Index inflation numbers on Tuesday as well as retail sales figures released later next week. A pickup in inflation would which would be of concern to the Bank of England could see the pound rally.

With British politics continuing to drive the markets as the ongoing Brexit negotiation moves forward then any developments on this front are likely to see considerable volatility for GBP EUR exchange rates. The cabinet reshuffle which has been concluded today could now set the tone for 2018 after a bad summer for the Prime Minister when Theresa May lost her majority in the House of Commons. The Brexit negotiations however are likely to be the biggest driving force for GBP EUR exchange rates. Clients looking to buy Euros could see a window of opportunity to purchase if the second round of talks get off to a good start.

The Euro however could be in for a better period after stronger data this week impressed the markets and this should help support Euro exchange rates. EU retails sales have performed better whilst Germany has also had a good run of economic data with very high factory orders recorded. Those with pending requirements are likely to see a volatile start to the year. To discuss your won requirement and how we can assist with any transfers please feel free to get in touch with me James at jll@currencies.co.uk

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