GBP/EUR lost the best part of 2% last week as the eurozone finally flexed its muscles. EUR/USD strengthened by a whopping five cents across the week, a feat the pound only narrowly failed to replicate against its trans-Atlantic adversary.
Volatility is incredibly high at the moment, which means any predictions for where the pound might move this week aren’t worth the paper they’re written on. The good news is that we can help protect your budget. Lock in today’s GBP/EUR rate by calling your account manager on 020 8003 4915.
Following the White House’s latest hijinks, the European Union announced a historic €800bn “rearmament plan”. That came just days after the German parliament’s significant plan to reform the country’s “debt brake” to allow for more defence spending.
UK property buyers were presented with some mixed news last week. On the one hand, the average house price fell by 0.1% month-on-month in February, taking the annual pace of increases to 2.9% – the joint lowest level since July 2024. On the other hand, the Financial Conduct Authority (FCA) outlined plans to ease the rules around mortgage lending. Chancellor Rachel Reeves welcomed the changes and said they would “kick-start economic growth and help working families get on the housing ladder”.
Former Bank of England governor Mark Carney has won the race to replace Justin Trudeau as leader of Canada’s Liberal party. Carney also becomes prime minister at a time when Canada is facing down Donald Trump, whose economic and military threats have become increasingly credible. There is also the small matter of a general election scheduled this year.
More crucial numbers are coming up for the US dollar. Wednesday’s inflation release is the star of the show, but there is also the Producer Price Index (PPI) and another job report to navigate.
Friday is the key date in sterling’s diary, which is when we’ll get to see initial GDP growth figures for January. Economists are forecasting a meagre 0.1% economic expansion from December.
