This Pound Sterling forecast discusses the latest Brexit news along with some key data released this week that could affect GBP exchange rates. The below table shows the market movements for a number of GBP currency pairings yesterday:
|Currency Pair||% Change||Difference on £200,000|
The next stage of Brexit negotiations is due to commence shortly and there is the strong probability talks could be more problematic than negotiations so far.
Trade deals are next on the agenda and these are perhaps the most important matters to be discussed in the whole Brexit process.
A time line has been put in place for trade talks to be concluded by October of this year. I am of the opinion this is very optimistic, I would expect an extension.
I think the two year time frame for a full Brexit is unrealistic and would expect to take far longer than the current target.
David Davis has reiterated that negotiations will not be “straightforward” and has vowed to fight against Brussels attempts to cherry pick which sectors of the economy will have access to the European market.
Chief EU negotiator, Michael Barnier will not be happy with Davis’ comments as Barnier has stated on several occasions financial services will not be included in a final Brexit deal.
Mr Davis is set to make a major speech next week and will set out the government’s objectives for the next stage of negotiations which are due to commence later in the month.
David Davis has stated the following in relation to negotiations, “They will generate the same public thunder and lightning we have seen in the past year. But I believe they will be successful, because the future of the Europe continent is best served by strong and successful relationships”.
The pound has been range bound against the majority of major currencies which means it is more important than ever to be in touch with an experienced broker who can make sure you are aware of any small windows of opportunity.
Tomorrow is a busy day for data releases and we will see the most influential releases of the week. Consumer credit data displays whether consumers are can afford large expenses and this can fuel economic growth. I am slightly pessimistic and think we could see a decline based on the current economic climate.
Next up is mortgage approvals, it is considered a leading indicator of the UK housing market and can influence the pound. Keep an eye on this release there is expected to be a slight decline, but if there is a move away from expectations we could see volatility on the exchange.
Finally we have Services Purchase Managers Index (PMI) data it is a barometer for the health in the services sector. With the Service sector being so significant for the UK economy this data could affect Sterling rates, however there is predicted to be little movement from the previous month.
For more information on how future data releases could affect your currency transfer, call our trading floor on 01494 725 353 or email me directly at firstname.lastname@example.org.
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