The Bank of England Monetary Policy decision will be delivered tomorrow with an expectation that rates will be kept on hold, this however doesn’t mean it will be a complete non-event. The commentary that will follow with Bank Governor Mark Carney delivering a statement along with answering questions could be key to any movement in the rates. More on the potential impact of this, as well as the ECB interest rate decision and ongoing Brexit developments in today's Sterling market report. The table below shows the range in exchange rates for a number of currency pairings for the past month, demonstrating the importance of timing your transfer to maximise on your return.
|Currency Pair||% Change||Difference on £200,000|
Carney could provide some clarity on what the Central Bank might do next and a hint towards further hikes could well be received positively. Alternatively if the rhetoric suggests a rate hike isn’t coming for a considerable time then the gains for Sterling against most currencies could be quickly reversed.
Mark Carney yesterday agreed to remain as the Bank of England Governor until 2020 which should see him hold this position for the whole of the Brexit transition from start to finish. Philip Hammond decided that keeping a “smooth exit” from the EU would be easier without a change of Governor at the Central Bank.
The gbp/eur did climb to a 5-week high yesterday and the news of consistency at the central bank only helps to add a little more certainty to Sterling’s position. Carney himself said he’s “prepared to do whatever he can to promote a successful Brexit and an effective transition at the Bank of England”.
It was reported that May and EU president Donald Tusk have this week held positive talks and a solution on Brexit seems to be moving ever slightly closer.
The main issue Theresa May has faced is more from the Tory rebels in recent weeks as talks with the EU appear to be progressing. The European Research Group which is led by Tory backbenchers are expected today to deliver their plan for the Northern Irish border, something Theresa May asked them to do rather than just attacking the Chequers plan to come up with an alternative.
There is so much happening on Brexit in the next few weeks, it’s vital to be in a position to trade on any market movements. Make sure you’re in contact with your trader so you can capitalise on the rate changes. 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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