New year low for the Pound agaisnt the Euro

Yesterday’s trading day saw the pound fall another 1% against both the Euro and the US Dollar. The Euro continued its strong rally as retail sales data came in a 0.2%, better than the expected 0.0% and US Markit services PMI and Manufacturing PM also came in just above expectations, helping the dollar hold a good position against the pound. GBP services PMI posted results a whole percent better than last month’s 52.7 but just shy of expectations for 54.0, so consequently the data was not able to permit the pound any rallies of its own.

This morning the ECB held its non-monetary policy meeting at 7am but today’s other main focus continues later this afternoon when our trading operating hours end and the US opens, the focus will be on the Federal Reserve as they release the minutes of last month’s meeting, which should provide more details behind the central bank’s recent decision to keep interest rates unchanged. The Fed’s chairman Janet Yellen’s dovish remarks last Tuesday in regards to being more cautious on raising interest rates has prompted many analysts to rule out a rate hike this April. The market will now be looking for clues in this meeting’s minutes on the timing of the next interest rate increase. Any comments could see big movements in rates across the board so for those looking to secure a currency requirement in the coming days this data release should be one to keep a close eye on.

As has been the case in recent months the lead up to the looming EU referendum is what is driving the market. The continued uncertainty that surrounds the referendum is what it driving these low rates of exchange for sterling/euro. So if you have a requirement in the coming months it could be worth dropping in a call to our friendly team to discuss the various contract we provide, and to help you time your transfer to achieve the best rates of exchange possible in a declining market.