The pound is still close to recent highs having touched 1.15 vs the euro and 1.43 vs the US dollar on 25 Jan. The euro also hit a high of 1.25 vs the US Dollar on 25th Jan and again on 1st Feb. So the pound is still strong despite some poor manufacturing figures in January while house prices have actually beaten predictions, up to 3.2% year on year.
With the US dollar quite weak, investors are looking for any excuse to push it lower and weak US employment data would do this. Meanwhile the European Central bank seems to be happy with a EUR/USD rate at 1.25.
For those of you interested in digital currencies the big slide continues. Most crypto-currencies have fallen by between 15-40% since last week with Bitcoin going below $8,000 for the first time since November.
Theresa May has been flying the British flag in China but back home there are still rumblings of dissatisfaction with her leadership from within her own party. Continued Brexit conflicts such as the impasse regarding the status of EU citizens arriving in the UK during the 2 year transition period continually threaten to upset the entente cordiale. Any subsequent fallout within the Conservative party could cause the pound to wobble so be very careful if you want sterling to continue on its current winning streak. Charts never go up in straight lines…
When buying a large amount of currency, every digit on the exchange rate matters:
The difference between 1.1400 and 1.1450 when buying 100,000 euros is £383.
Written by www.thecurrencyexchange.co.uk