Catalan Relief For Sterling Euro Exchange Rates
11 October, 2017
Sterling Euro Exchange Rates
Sterling Euro exchange rates moved within a thin range yesterday as mixed data from the UK gave little for investors work with. Earlier in the session German import/export and trade balance came in better than expected. The subsequent release from the UK showed an ever-widening deficit.
The German figure was surplus €21.6 billion while the UK, on the other hand, slumped further than expected to negative £5.835 billion. While these results helped the euro, the UK’s better manufacturing and industrial production data helped halt the rally.
Catalan President Delays Independence Declaration
We waited all day for the Catalan Presidents speech where no one knew what he might say, with some speculating he would declare independence from Spain. This would have had an unknown effect on the single currency, but with a delay declared, in order to “open a dialogue” we shall have long to wait to see if it happens and what effect it causes.
The result of the delay was a sharp, albeit small weakening of the euro which left the trading range for sterling/euro a mere 30 pips all over the day.
Cable Gains Once Again
With the missed UK data and some positive murmurs from Theresa May surrounding EU nationals being allowed to stay, cable gained for the second day. The US had very little data releases of any note to investors which left those looking to buy US dollars nearly a cent better off by the close of trade.
Hump Day – Slump Day
Wednesday could well be another day of thin trading ranges for sterling with only a smattering of low key releases ahead of the main event tonight. The FOMC release their minutes from their latest policy meeting this evening, which may throw some further insight into when interest rates may rise again.
Markets are favouring December, but any hint at a change to this could cause some overnight volatility so worth speaking with the team today if you have a dollar transfer to make soon.