The Bank of England Monetary Policy Committee will deliver their latest interest rate decision this afternoon. Suggesting the event will be a non-event would be miss-leading however the decision itself will be pretty straight forward, there is almost no chance of a change.

Currency Pair% Change in 1 monthDifference on £200,000
GBPEUR4.9%€11,040
GBPUSD4.01%$10,200
GBPAUD4.84%$17,100

Being this close to Brexit and the outcome not entirely clear, the Central Bank would be very brave to make any changes to monetary policy at this point. The Governor Mark Carney will deliver his comments in the statement after the decision and this always has the capacity for major volatility.

Carney, who has unsurprisingly been a staunch remainer since the Referendum will almost certainly sight the dangers of uncertainty to the economy and the risks faced should we go down the no deal Brexit path. The BoE Governor is infamous for weakening sterling when he speaks, so following sterling’s losses since the start of the week there could be a potential window for any clients looking to buy pounds.

May in Brussels Today

May in Brussels Today

The UK Prime Minister returns to Brussels today to attempt to work out an alternative arrangement to the Irish backstop which was rejected by the Commons.

Yesterday Mrs May spent the afternoon with Sinn Fein and the DUP at Stormont which the latter reported as a positive meeting, whilst Sinn Fein suggested nothing has changed in the last few months and the PM doesn’t have a plan.

Either way, May will be in front of the EU today, and following comments from EU officials over the past few weeks she’s going to do well to get any concessions.

This afternoon with the Bank of England decision and the PM in Brussels, there is a strong possibility that sterling could see losses. May has been clear that if the EU don’t budge and MP’s don’t take a deal there will be a No Deal Brexit; the reality of this could once again take its toll on Sterling.

Therefore if you’re looking to sell euro’s, tomorrow may be your window of opportunity as the GBP/EUR mid-market rate could test the 1.12 levels. Get in touch with your broker so that they know to make contact if a particular rate that you’re looking to achieve is reached.

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