GBPEUR hits 11 month low, no data leaves Pound exposed to further losses
28 August, 2018
Last week was a poor one for the Pound across almost all currencies bar the Dollar, which weakened amidst political trouble for Donal Trump. This morning as we return from the Bank holiday weekend we find the Pound at 11-month lows against the Euro.
Some string German IFO data yesterday, combined with the fact that the Pound continues to absorb the fear that we will reach a no deal has seen the Pound continue to ebb lower. Certainly, comments from Theresa May suggesting the UK would endure a “No Deal” did little to add confidence to suggest we would reach an agreement, and it is this uncertainty which is weighing on the Pound and exchange rates. The USD has also managed to claw almost half a cent back from its losses, again only demonstrating how fragile and unfavoured Sterling is a present.
Dangerously there is no data of note out from the Pound this week, which leaves it exposed to continuing downside risk. Should the Greenback or single currency post any favourable results we will see rates drop further as the Pound has nothing to support it. And with even Theresa May suggesting now a “no Deal” is likely it is hard to see in the short-term what respite there may be. As many of the large banks and investment firms including Goldman Sachs have warned we will see a move towards parity early next year, this is starting to look like it could be a reality, as we only seem to see the Pound moving one way now, and that is down.
Should you have any upcoming requirements and if you are worried about the rate and your cost increasing, speak to your Currency Index broker today – remember that we offer a number of ways you can help protect your budget including Forward contracts, so don’t let inaction be a costly mistake, and call us for some friendly and professional guidance.
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