Sterling made slow but steady progress against the euro last week, taking GBP/EUR around 1% higher than a week ago. The pound has found some stability lately but remains the best part of three cents below where it was before “Liberation Day”.
This improvement took place even as British consumers sound the alarm on the economy. The impact of trade tariffs has certainly spooked people, and three-quarters of Britons now expect the economy to get worse this year, according to research carried out by prominent pollster Ipsos Mori.
These factors are strong indicators of more volatility ahead. Our advice is and always will be that you can eliminate the risk to your budget down the line by locking in today’s GBP/EUR rate. You can do this with a quick and stress-free call to your account manager on 020 8003 4915.
Any Canadians reading this will need no reminding that the nation goes to the polls today. Will we see a late swing to the right, or will former Bank of England ace Mark Carney secure the top job? Carney certainly seems to be in poll position to add another impressive job title to his bulging CV.
There isn’t too much in the way of economic data to set the pulse racing this week. What little that does arrive could be key for GBP/EUR though, with Germany and the eurozone as a whole reporting their most recent inflation and GDP numbers.
The US dollar, which has been on something of a wild ride lately, is likely to be most affected by the Core PCE price index. The Federal Reserve — America’s central bank and target of much of Donald Trump’s ire — views this study as particularly valuable information in deciding the path of interest rates.
