As promised here’s a brief update on what’s been happening with the Euro over the last week.
Sterling last week continued its New Year charge higher to take GBP/EUR to resistance between 1.15-1.1550 before exhausting.
Data out of the UK continued to positively surprise with a fall in the number of claims in the last quarter indicating a resilient and stable employment market.
The recent signs of recovery have also proven to be a welcome relief to the over –burdened public finances.
In the background M&A activity gave Sterling a boost with the Kraft bid for Cadbury’s stealing the headlines.
Meanwhile the latest data from the service sector in the Eurozone disappointed, however manufacturing continued to grow at its fastest pace for two years, helped by China that reported an astounding 10.8% growth rate in the fourth quarter.
As for the outlook, Sterling has been quick out of the blocks this year pushing from 1.10 to reach our half way mark on the road to 1.20, which we expect later this year.
Arguably a little too quick as exhaustion set in at the 1.15-1.1550 resistance zone, which is where GBP/EUR broke down through last summer when a further extension to the quantitative easing programme was announced.
GBP/EUR Movement – High’s & Low’s of last week (18/01/10 – 22/01/10)
A movement of: 2.12%
Difference on £200k
Low: 226,400 Euros
Difference of:4,800 Euros
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
A further update will be added next week.