After calling the latest Brexit deal a ‘fudge’ the former education secretary Justine Greening has called for a second referendum. Following the resignations from key Tory members over recent weeks this ongoing uncertainty keeps the pressure on the Pound. The table below displays the range of exchange rates during the past 30 days showing the importance of timing your currency transfer correctly.
|Currency Pair||% Change||Difference on £200,000|
Option one would be to agree to the Prime Minister’s deal, Two-stay in the European Union and Three to have a completely clean break from the EU with no deal.
Having resigned earlier this year Greening is erring towards option one or two in order to give power back to the people. The Chequers meeting over a week ago led to David Davis resigning and he was shortly joined by Boris Johnson and both claimed that the current Brexit plan is not what they had wanted to happen.
Greening was a big Remainer prior to the vote back in June 2016 and is the second ex-Cabinet minister to want a second referendum. The problem she has highlighted is that the current plan will not suit either the Remain or the Leave camp.
For many of the Leave camp Greening said that the deal ‘does not deliver the proper break from the EU that they wanted.’ Meanwhile, Prime Minister Theresa May and Labour leader Jeremy Corbyn have both said that they do not want a second referendum.
Whilst the political landscape remain uncertain this is keeping the Pound from making too much headway against a number of different currencies including vs the Euro so if you’re considering making a currency transfer keep in close contact with your account manager who will happily keep you updated.
Later this morning the UK will release both Average Earnings as well as the latest UK unemployment figures. Both have been showing very positive signs and with average earnings surpassing inflation recently and UK unemployment close to its lowest level on record could this data give the Pound a boost?
Owing to the England football’s team success in the World Cup UK Retail Sales are likely to have been given a real shot in the arm when they come out on Thursday after having a dreadful period in the last quarter.
Prior to then UK inflation data is due to be released with the latest Consumer Price Index on Wednesday morning. UK inflation has been falling towards the government’s target of 2% so another move towards this level could provide the Bank of England with some evidence in support of a rate hike when they meet on August 2nd.
The central bank chose to keep interest rates on hold at 6-3 last month and at the moment there appears to be a 70% chance of a rate hike coming early next month according to a recent article by the Guardian.
It may be that the Bank of England are considering raising interest rates soon so that they will be able to cut them again should the Brexit process cause further problems over the next few months. Therefore, could we see the Pound making some gains during the course of this week?
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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