The pound exchange rate rose to a three-week high against the euro exchange rate ass the report showing UK Services expanded in November faster than analysts forecast signaled that the economy is weathering stagnation among its European neighbors. Why is anyone surprised as half of Italy and Spain’s youth are unemployed and cant afford to spend money and these are traditionally the market that spend all there disposable income.Goldman Sachs call for 1.5000 for the Pound Euro Exchange rate is a fair call in my eyes and the unemployment issue is not being addressed in the Euro Zone
Pound Sterling climbed for a third day against the shared currency and halted yesterdays drop versus the US Dollar exchange rate!
The report, along with separate manufacturing and construction gauges, indicates the U.K. economy will grow 0.6 percent this quarter, Markit said. The Pounds fortunes though are limited as the lower costs based caused by a decrease in transport costs due to the fall in oil prices. This is causing inflation to head below the Bank of Englands target, and leading economists are forecasting no change to policy tomorrow after Governor Mark Carney highlighted headwinds to growth such as a weakening euro area.
All in all thew world is a little bit of a mess and causing foreign exchange traders to change their currency forecasts as quickly as they change their pants.