Foreign Currency Direct Foreign Currency Direct
Open an account

It has now been confirmed the Brexit deadline will be extended until 31st October, although if a deal can be agreed in the meantime the UK is free to leave and we can move on to the next stage of negotiations.

Currency Pair% Change (Month)Difference on £200,000
GBPEUR2.48%€5,700
GBPUSD2.54%$6,600
GBPAUD3.16%AUD $11,560

UK PM Theresa May wanted a shorter extension and has stated she will aim to get the UK out of the EU at the earliest opportunity.

European Council President Donald Tusk sent out a warning to his “British friends” saying “please do not waste this time.” Which was rather ominous.

What does the Brexit Extension mean for GBP?

Theresa May tweeted: "The choices we now face are stark and the timetable is clear. So we must now press on at pace with our efforts to reach a consensus on a deal that is in the national interest.”

It seems we are at an impasse with any of the options put forward to the House of Commons failing to gain a majority. At present I have little faith that we will get a deal in place in quick fashion and I would not be surprised to see us in a similar position in October.

The market moves on rumour as well as fact and due to an extension being widely expected we saw little movement on the market. I am actually surprised we have not seen the pound in a weaker position, its resilience could be attributed to the drop in probability of a No-deal scenario.

Unemployment & Average Earnings

Brexit continues to be the main driver on sterling value at present, but there are some data releases on Tuesday next week which could change sterling value. Unemployment and average earnings are due out. There is due to be a slight rise in unemployment from 3.9% to 4% and average earnings is expected to remain stable at 3.4%. If both releases are worse than anticipated this could result in a fall for the pound.

News

Brexit continues to drive sterling exchange rates

Brexit continues to drive sterling exchange rates

House Price Growth hits a 6 year low and inflation remains at 1.9%, how will the Bank of England react?

By Dayle Littlejohn
Will the Pound make gains this week?

Will the Pound make gains this week?

The pound remains resilient after UK unemployment data and Average Earnings data releases.

By Tom Holian
UK business sentiment lowest since Referendum vote in June 2016

UK business sentiment lowest since Referendum vote in June 2016

Theresa May continues to make plans for a No-deal Brexit.

By Amelia Spencer
Read more articles

 

Download our monthly currency forecast

Download here

 

W. Ryan

UK

Daniel Johnson is efficient, courteous & everything happens on time as directed. FCD would always be my first choice for currency purchases.

Read our testimonials

G. West

UK

Superb service from Daniel Johnson that just gets better.

Read our testimonials

N. Haywood

A very fast and professional service all round from contact to delivery of currencies to one’s chosen destination. Daniel Johnson is the epitome of that fine service too!

Read our testimonials
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.