The Pound versus the Euro has had a very strong month in September with a number of positive economic data releases and became the best performing global currency last month.
However, as we have moved into October the Pound has started to fall from the recent 2 month high hit last week. UK Manufacturing data has started to show signs of a fall and the issue of Brexit continues to weigh heavily on Sterling exchange rates. Foreign Secretary Boris Johnson claimed that Theresa May will make a success of Brexit and suggests that the whole cabinet is united with each other. However, some analysts argue that Boris Johnson is aiming to make himself the chief protagonist of Brexit and it will be he who will take Britain ‘forward… to a great Brexit deal’.
Between the highs and the lows in September we have seen almost a 6% movement between Euro and Sterling which is the difference of £11,000 on a currency transfer of €200,000, highlighting the importance of timing when making a currency transfer.
As we progress this month clearly the GBPEUR exchange rate will be affected by the ongoing Brexit talks so depending how these go this is likely to be one the main influences of Sterling over the next few weeks. At the moment one of the major issues are that of citizen rights across Europe as well as the ‘divorce bill’ and various trade agreements.
We end the week with US Non-Farm Payroll data as well as US unemployment figures. With the US potentially looking at raising interest rates once more before the end of the year, this data could be crucial to the decision made in the future by the US Federal Reserve and therefore we could see a lot of volatility on the currency markets towards the end of this week.