This Sterling exchange rate update discusses the result of the House of Commons vote on the Queen's speech and look at a number of economic events which could affect GBP exchange rates. The below table shows the market movements for a number of currency pairings in the last 30 days:

Currency Pair% ChangeDifference on £200,000
GBP/EUR2.58%€4,100
GBP/USD3.45%$8,600
GBP/CAD4.79%AUD $16,000

Queen’s Speech

Often described as the “start of a new school year” for politicians, it signals the start of a new Parliamentary Session. The Queen reads aloud a letter prepared by Government, describing legislation the Government hope to get approved by Parliament over the year, on which proposal amendments are debated and voted on. The final speech is then either voted down or through by MPs in the House of Commons.

Queen's Speech – The Result

Confirmation the final speech was passed by 323 votes to 309, a majority of just 14, released late yesterday afternoon. However, GBP rates failed to rally further after Theresa May passed her first potential threat as Prime Minister since the General Election. In my opinion this could be due to added pressure having being placed on an already brittle deal between the Conservative party and the pro-life Democratic Unionist Party (DUP) from a tabled amendment to the Queen’s speech.

Proposed by Labour MP Stella Creasey concerning abortion rights in Northern Ireland gained cross party backing from more than 50 fellow MPs. In order to avoid chances of a Tory backbench rebellion, leading to a possible defeat on the final speech it was announced by Phillip Hammond the amendment would be included.

Economic Data Releases Affecting GBP

This morning at 9:30am, UK Gross Domestic Product (GDP) figures are released for Q1, measuring the total value of all goods and services produced in the economy. As one of the most important economic data releases for any economy, if figures significantly deviate from the consensus we could see immediate but short-lived spikes for our clients to take advantage of. If you have a foreign currency requirement it may be wise to contact your account broker here at Foreign Currency Direct in order to ensure you are in a position to trade swiftly and seamlessly.

On Monday recently appointed member of the MPC and Chief Economist at the Bank of England Andrew Haldane will make a speech. The tone of which has the potential to send GBP rates in either direction as a hawkish approach could add further weight behind the possibility of an interest rate hike at future MPC meetings.

For more information on how future data releases could affect your currency requirement call our trading floor on 01494 725 353.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.