The Pound brushed off the poor unemployment figures this morning, and GBP/EUR rates remain around the 1.2650 mark:
There haven’t been any significant economic figures released that would strengthen the Pound, and the reason rates have recovered is due to investors covering short positions and profit taking following the recent weakness for Sterling. Indeed even Mark Carney, the BoE governor, warning yesterday of the risks of the UK leaving the EU did nothing to affect Sterling.
Tomorrow (Thursday) is key to the next move for GBP/EUR rates. There is a very good chance they will announce, or hint at, further stimulus for the Eurozone. If the ECB president Mario Draghi hints at this in his press conference tomorrow, then it may cause the Euro to gain strength, and pull rates lower again.
The current levels are around the best in 3 weeks, and certainly worth considering taking advantage of. It was only several weeks ago that GBPEUR was in the €1.23’s, the lowest the currency pair has been since late 2014. The general feeling in the market is still that the Pound is likely to come under pressure due to the EU referendum, so those that need to buy Euros should consider their position ahead of tomorrow’s ECB release.
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