Pound breaks one year highs

Last week was a good week for Sterling, breaking key resistance levels against the Euro and hitting levels last seen in May 2017, more importantly closing last week at these levels is a positive sign for Sterling against the single currency. These gains were mainly supported by below average Euro eco stats, Eurozone industrial figures disappointing, with figures coming in at 2.9%, compared to optimistic expected figure of 3.8%. 2.9% showing contraction for the month of February by 0.8% where predictions had been a growth of 0.1%.

Furthermore, comments made early last week by the ECB’s governing council regarding inflation depleting Euro’s value early on. In wide agreement the people who matter at the ECB, stated there was not enough ‘evidence that inflation is being sustained’ therefore bringing forward the end of the QE programme would hamper the Eurozone growth.

These gains last week have now made your Euro purchase cheaper, 100,000 Euro’s now £650 cheaper compared to last weeks close. If your requirement is a few months away why not take advantage of our forward contract. With last few key data releases from the UK out this week, poor figures can quickly wipe out the gains.

This weeks economic outlook:

Monday 1.30pm USD Retail sales

Tuesday
2.30am AUD monetary policy meeting
9.30 am GBP average earnings
1.30pm USD Building permits

Wednesday
9.30am GBP CPI
3.00pm CAD BOC Monetary policy meeting/rate statement
3.30pm USD Crude oil inventories

Thursday
9.30 GBP retail sales m/m

Friday
1.30pm CAD Core retail sales

With another busy week ahead, stay in touch with your account manager to discuss your options.