There was strong volatility in GBP/EUR rates yesterday. The dominant short term trend is GBP bullishness with a blip to the upside yesterday that was quickly given back.
With little on the horizon today except S&P purchasing managers indices, it's unlikely things will change much for GBP/EUR. Later in the afternoon there is a speech from the ECB so that might bump things a bit.
GBP/USD is a similar story with the dominant trend in favour of the Pound. Employment change numbers and the Institute for Supply Management's data could affect this.
The strength of the Pound could be a result of the ongoing rhetoric around the UK's recovery back out of the recent difficulties. One member of the Bank of England's monetary policy committee suggested interest rates might need to come down sooner rather than later to ensure there isn't an overshoot when inflation starts coming down. The BoE has a 2% target for inflation. With lowering wholesale energy prices it's believed the inflation figure (currently 10.4% per annum) could drop quickly.
Against most of the major currencies it seems to be a similar story. Pound strength.
Business news centres on the UK's gender pay gap suggesting women earn 9.4% than men on a general basis in the UK.
Today’s Economic Calendar
EUR: 09:00 S&P Global Composite PMI
UK: 09:30 S&P Global Composite PMI
US: 13:15 ADP Employment Change
US: 15:00 ISM Services PMI
EUR: 15:00 ECB's Philip Lane Speech
As ever we look forward to keeping you in the loop and look out for our next update.
Our friendly currency experts are here to assist you and guide you through the markets, we offer a first-class service and even an online platform so you can monitor your transaction in real time.
Our business ethos is based on bank beating rates and fantastic customer service, click the link below for a no obligation quotation and see the savings for yourself.