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Eurozone Growth hits best level for 5 years and Article 50 Issues (Tom Holian)
Eurozone growth published yesterday morning showed its best level in over 5 years according to the most recent Markit Composite Purchasing Manager’s Index.
The reading came in at 56.7 from the previous month of 56 and anything above 50 shows growth.
With Article 50 coming next week on Wednesday the timing of this data release is highlighting the risk that the UK is facing by officially announcing its withdrawal from the European Union.
Indeed, we are opening ourselves up to 2 years of negotiations with 27 member states so to me I think the Pound is entering one of its most uncertain periods in history.
If we consider what happened with the Brexit vote last year the Pound saw its biggest single drop vs the Euro and the risk is that we are going into the unknown as of next week.
In my experience in the foreign exchange industry which goes back to 2003 I have seen how markets can move especially when there is a lot of uncertainty so on Wednesday we could see big movements for Sterling exchange rates once the formal announcement has been made.
Clearly Prime Minister Theresa May will try and opt for a positive tone but the question is how will markets react.
My personal expectation is that we’ll see problems ahead for Sterling so if you need to make a transfer in the short term it may be worth organising this before Wednesday.
If you don’t have the full amount of funds at the moment and are worried about what may happen to the Pound then it may be worth buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.
This is especially useful if you’re remortgaging or making large currency transfer for a property purchase.
Working for one of the UK’s leading currency brokers since 2003 I am able to offer you bank beating exchange rates so if you would like a free quote when exchanging currency then feel free to contact me directly and I look forward to hearing from you.
Tom Holian [email protected]
Source: http://www.poundsterlingforecast.com/2017/03/25/eurozone-growth-hits-best-level-for-5-years-and-article-50-issues-tom-holian/
