By Luke Dyson
Coming into a new month, we have seen sterling to Euro trapped in a rangebound market for the last couple of weeks, with very little day to day movement and no clear trend in sight.
Moving forward for sterling, it could be a rough road ahead coming into the next few months.
Business confidence has fallen to the lowest point since 2016, with the economic confidence index coming back at -72 for July.
As a result investments , headcounts and revenues are all expected to potentially fall in the coming months.
This is mainly down to significant cost increases, national minimum wage and NI changes, which have been implemented quickly, but also little to no improvements to help the business sector.
This is all very negative for sterling strength, however no one knows what can happen in the future. But if you have an up and coming currency requirement please keep in touch with your consultant, to discuss getting a strategy in place or even taking advantage of the rates before we see any further potential decline.
Things to keep an eye out for moving forward, we have non farm payrolls in the US today at 13:30, but also next week the Bank of England interest rate decision at 12:00 on the 7th August.
Both are very powerful market movers and depending on the outcomes could significantly impact the sterling to euro or sterling to US dollar exchange rates.