Sterling Could be at Parity with the Euro Analysts Suggest

10 August, 2017

Ashley Finill

Yesterday was a quiet day on the market with little data being released which kept the rates in a stagnant state. This provided a bit of breathing space for Sterling after last week’s losses against both the Euro and the Dollar. With sentiment being heavily linked with the Euro and Sterling being so fragile it may only be a matter of time that the Pound plunges again as it flutters around the 1.10 level.

Various analysts suggest that by the end of this year that Sterling could be at parity with the Euro. It is easy to think that because the rates have never been that low that this will never happen, that may be a naive mindset, after all with still some political instability and heading into the unknown of leaving the European Union things could very well get worse before they get better.

Should you have a requirement within the next few months it may be worth thinking of getting you currency requirement in place sooner rather than later so you are not caught out in these uncertain times.

Today should be a busier today as there are data releases that will more than likely wake the market up. Starting this morning here in the UK at 9.30am manufacturing and industrial production will be announced. Both are set to come in at a better reading than last month which could provide Sterling with a much-needed boost. At the same time, Trade balance figures will also be announced. In the afternoon at 1.30pm Jobless claims will be released in the states which is expected to remain at the same figure of 240k. Lastly in the evening staying in the US at 7pm the monthly budget statement will be released.