The pound fell by half a cent against the euro on Friday in a frustrating end to what had been positive week for sterling. The pound has bobbed around the same level against the euro for the last several weeks, failing to recover the ground it has lost since a two-cent fall at the start of June.
The euro continues to trade well against its rivals (notably the US dollar, which is really coming under the pump from all angles) but underwhelming data from the British economy has prevented sterling from rediscovering any real momentum.
Focus turns to the European economy this week. There’s opportunity and danger here for the euro, with markets watching closely for any sign inflation increased last month, as well as the possibility of a last gasp trade deal with the United States.
The truth is that nobody knows where rates will move this week, or indeed in any week. That’s why we would highly recommend locking in today’s rate, which will help keep your money safe whatever happens. Call your account manager on 020 8003 4915 to get started.
If you’re wondering how US President Donald Trump’s tariffs have been affecting things here at home, the early numbers don’t make pretty reading. British car manufacturers – a club that includes the likes of Rolls Royce and Jaguar – reported a huge fall in exports over May. The number of cars shipped across the Atlantic fell to their lowest level in three quarters of a century over that time.
In early April, the Trump administration announced it was implementing a three-month pause of trade barriers for a host of countries. It now looks like China and possibly the EU are lining up eleventh hour deals to avoid higher charges on exports, but currency markets will likely be bumpy until the ink is dry on those agreements.
