GBPEUR rates drop following strong Euro data

1 March, 2017

Matthew Boyle

Yesterday saw the Pound lose ground against the Euro following the news at the weekend of a potential Scottish referendum and amidst a raft of strong Euro data releases. Rumours of a possible Scottish referendum had seen rates drop over the weekend and during Monday, and Eurozone data did little to help yesterday morning. Posting many strong releases including positive results for Services sentiment, Business climate and industrial confidence the Euro was the primary winner of the day.

Against GBP throughout the day’s trading, it gained around ¾ of a cent, on a day where the UK posted no data, and so offered no defence against the single currencies advances. Equally against the USD the Euro gained throughout the day, closing around ½ of a cent better than at the days open. The US did release durable goods order data in the afternoon. However this was a mixed bag, and as a result, while GBP USD did see a small flurry of movement in the afternoon but closed the day where it opened, with the data doing little to prevent the Euro from gaining against the Dollar following its strong results in the morning.

Today will be another busy day as we see the return of data from the UK, alongside many big releases from both Europe and the US. German unemployment and Markit manufacturing PMI eco stats dominate the morning alongside UK mortgage approval, consumer lending and also Markit manufacturing PMI. In the afternoon Germany releases more inflation data. However, the focus will largely be on the US who release market manufacturing PMI of their own and also ISM manufacturing PMI which could certainly move rates.

Elsewhere in the world, we have the Bank of Canada interest rate decision and statement, so those “Loonie” traders who are reading may like to stay in close touch.

With a busy day ahead for data, much of the market will be watching for any key economic indicators particularly for GBP as we near ever closer to March the 9th when article 50 is due to be invoked. As many of you may have seen GBP exchange rates have remained very range-bound over the last few weeks, many would suggest in anticipation of this date. With increased speculation over a potential Scottish referendum growing and uncertainty rising over how article 50 will play out, we could well see the pound suffer and rates to buy currencies from its drop. So if you have an upcoming requirement to sell GBP and buy other currencies give your Currency Index broker a call today for some friendly and professional guidance in how to get the most out of your transfer and avoid being caught out with any costly movements in the rate.