This Pound Sterling update concentrates on the events that could impact GBP exchange rates this week. To keep track of exchange rates visit our live currency rates page. The table below displays the movements for a number of GBP currency pairings in the last week:
|Currency Pair||% Change||Difference on £200,000|
Prime Minister Theresa May is thought to be announcing changes to junior ministerial positions as well as appointing a Secretary of State following the sacking of Damian Green.
In the last two months alone, the Cabinet has seen two resignations and one sacking, suggesting the Government is in some sort of chaos.
There could be some movement on the markets if the unexpected were to happen, however Theresa May with so many battles already underway is unlikely to further increase the strength of the spotlight already on her.
Boris Johnson, Amber Rudd and David Davis are all expected to remain in their current roles following Theresa May's Cabinet reshuffle.
A poll of currency strategists by Reuters news agency has indicated that Sterling is thought to be at its lowest point, however there is little optimism that it will be rocketing up any time soon in the near future. Many analysts suggested that most of the potential bad news has already been factored in over the last year.
The one main consideration unsurprisingly was the Brexit talks, the fate of Sterling currently entirely sits with what deal the UK can achieve with the EU. Over the next few weeks talks will move back into full swing and news of progress or confirmed details could provide Sterling with a boost.
On Wednesday the Industrial Production and Manufacturing Production data for November will be released. Following the slow start to year from a data perspective with Services PMI falling below the expected level, there could be some good news on the horizon.
Last week the productivity figures were released for Quarter 3 of 2017 showing the fastest rise for six years, this could start to filter through into results this week. Should that be the case the GBP/EUR rate could find itself trading back above the 1.135 level in my opinion.
For more information on how future data releases could affect your Sterling exchange, call our trading floor on 01494 725 353 or email me here.
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