Yesterday saw the Pound lose ground against all of its major counterparts. The Pound’s value has been dictated by politics of late and yesterday confirmed this. The Pound started the day on a high following MP’s voting on the Brexit bill that would allow Theresa May to begin Brexit negotiations, climbing to highs of 1.1763.
However, as we have seen on more than one occasion in recent times, the Pound's gains can quickly be reversed. Yesterday was forecasted to be an important day for clients with a Sterling based requirement, and it didn’t disappoint.
There were two main events yesterday, firstly, the highly anticipated Brexit white paper. Theresa May released a 77 page document detailing her plan to leave the EU. Much of the information was already on offer from her speech last month, however she added some further insight into key topics. For those clients who didn’t want to read the whole 77 page document, the main points were;
Although this did little to harm the Pound at the time, it did little to help shed any more light. The Pound rallied when Theresa May delivered her landmark speech last month by nearly 2 cents against the US Dollar, however yesterday’s Brexit whitepaper hardly had the same effect.
The real fireworks came after the release of the growth forecasts at the Bank of England Interest rate decision and subsequent monetary policy meeting. Against market expectation, none of the 9 voting members voted for an interest rate hike. The recent rise in inflation in the UK as a result of a weaker Pound following Brexit has meant that an interest rate could occur soon.
As the markets and investors take in the information from the White Paper today, services data in the form of the UK purchasing managers index is released and could provide some support for the Pound. Economic data after our decision to Leave the EU has been positive, this trend could continue which may help the Pound regain its losses.
The UK are one step closer to their EU divorce and clients with a foreign currency requirement may look to protect their position in the event of further Sterling losses. Call our trading floor on 01494 725 353 or email me here to discuss a transfer.
Amazing Customer service. Great spot rates & reliable transfers
Excellent service and very efficient and easy process.
I have used Foreign Currency Direct for many years and always helpful, polite and good rates according to the market. Easy transactions and seamless service