This report discusses the contents Boris Johnson's Brexit speech yesterday and looks ahead at the key events for Sterling exchange rates this week. The table below displays the market movements for a number of currency pair during the last 2 weeks:
|Currency Pair||% Change||Difference on £200,000|
Boris Johnson yesterday delivered the first speech of several Cabinet Members on Brexit which are designed to unite the country behind the Governments position. Johnson in his attempts to build bridges warned that he may make the situation worse and risked causing further irritation. The Foreign Secretary did suggest that holding another referendum would be disastrous for the economy and would “lead to permanent and ineradicable feelings of betrayal”, which reiterates there are no plans for another vote.
Boris did play down the benefits of the single market and customs union, implying that it’s not as beneficial as supporters claim.
Boris suggested that some countries are currently trading within the EU without actually paying any fees. Which when you consider the majority of countries aren’t net contributors there could be some sustenance behind that.
Tomorrow the latest Retail Sales data for January will be released which is expected to show a significant increase. In the last few months UK data has been positive from a growth perspective and this data could be better than expected moving forwards as consumers appear to continue spending. Should the data release offer a different result than the expected then there could be market volatility.
Sterling has lost ground in the last few weeks against most major currencies and with a focus on Brexit set to come in the next few days that could continue. Several members of the cabinet will speak in the coming days and there has been few comments from UK politicians that have boosted Sterling.
However Angela Merkel will speak with Theresa May on Friday in Germany and the Chancellor has previously helped boost Sterling with positive Brexit comments. When they deliver a joint press conference tomorrow that may present a window of opportunity with clients looking to sell Sterling. Make sure you’re in contact with you broker to discuss your options to make sure you’re trading at the right time.
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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