The Pound has been struggling under the weight of continued Brexit uncertainties. Sterling has reached its lowest levels all year against the Euro, Swiss Franc and USD, and been very close to it against the Australian Dollar. More on the reasoning behing this in today's Sterling report. The table below shows the range of exchange rates for a number of currencies during the last month, highlighting the importance of timing your transfer to maximise your return.

Currency Pair% ChangeDifference on £200,000
GBPAUD2.88%AUD $11,071

We are still no closer to understanding what Brexit means and the lack of clarity is causing investors to shun the Pound. All sides from the UK whether it be Remainers or Leavers, and in the EU appear to be digging their heels in deeper than ever. The prospect for some kind of middle way being acceptable seems limited and more uncertainty seems likely as Brexit day approaches, we are just 7 months away.

This Thursday sees the release of the Government’s plans for a no-deal Brexit and it could go some way to alleviating the stress Sterling is finding itself under. However, what seems more likely is that through a lack of detail, it will raise more questions than it answers.

Headlines this weekend surrounded the UK founder of the fashion label ‘Superdry’, pledging £1m to the campaign for a second referendum. Whilst exhausting for everyone involved, the calls for a second referendum are growing. This will only add to the uncertainty around the pound and Brexit, clients with a sterling position should be preparing for more turbulent times ahead.

UK Chancellor to Give Further Direction at the End of the Month

What will drive the Pound this week?

Economic news for this week has already kicked off with the latest Rightmove House Price Index data released. It showed a rise in UK house prices of 1.1% over the year, versus 1.4% expected. House prices are an important factor driving the UK economy but this has not done too much to move the pound.

Economic data doesn’t seem to be having too much impact on the pound with Brexit uncertainties taking up such concern amongst investors. Even positive news last week on Unemployment falling to a 43-year low failed to spark much interest in GBP.

Tomorrow is the latest Public Sector Net Borrowing figures which will be helpful as to showing how the Public Finances are shaping. Clients with a Sterling position, buying or selling might do well to get in touch today to review their position.

With the Pound languishing at its lowest levels of 2018 I cannot see any major changes until we understand Brexit better. With no concrete news expected on Brexit until September when MP’s return, sterling holders look set to remain in a precarious position.

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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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.