Sterling will have to get off to a strong start this week, if ground is to be gained following last weeks poor performance. The Sterling report below covers the factors impacting the Pound currently, the table below shows the range of exchange rates for a number of currencies and the difference you could have achieved in return when selling £200,000.00 during the past week.
|Currency Pair||% Change||Difference on £200,000|
The Pound ended the weeks trading down against all major currencies, with the lowest levels seen since the end of last year against the EUR of the mid-high 1.11s and the lowest levels seen since last September against the USD of just below 1.30, which has been recognised as a support level for the paring. The most notable movement has been against the AUD, which has seen movement of almost 10 cents over the last 3 months with highest levels in April hitting 1.84 and currently levels fluctuating around 1.77.
Sterling’s recent market movement has largely been influenced by the ongoing Brexit negotiations and developments surrounding the UK’s position on the custom union but last weeks flat inflation data has dashed hopes of an interest rate hike next month and largely attributed the currencies sell off by investors last week.
UK Prime Minister Theresa May's plans to leave the European Union appear to have been overwhelmingly opposed by the British public and more than a third of voters would support a new right-wing political party committed to quitting the bloc, according to a new YouGov poll released over the weekend.
This deepening political crisis comes after PM May unveiled her plans for Brexit at the Chequers meeting, a proposal which deeply divided her cabinet which resulted in two high-profile resignations, that of Foreign Secretary Boris Johnson and Brexit Secretary David Davis, increasing concerns over the state of the party.
The report in which 1,668 adults were questioned between 19th - 20th July, showed that only 11% would support May’s plan whilst only 12% believe it would offer a positive outcome for the UK.
The most concerning outcome of the report was arguably the fact that 34% of voters felt that Boris Johnson would be a better candidate for Prime minister and that 27% favoured ex UKIP leader, Nigel Farage.
There has however been some potential relief on the current political strain on UK politics and pressure on the pound, following comments made by the EU’s chief negotiator, Michel Barnier which suggested that the EU acknowledges there is a solution to the UK’s relationship with the custom union and the Irish border that would satisfy the parties involved.
It is a very light week for UK economic data this week, with no notable releases scheduled, but there will be a speech delivered by Monetary Policy Comity member, Dr. Ben Broadbent later this afternoon which could provide positive Sterling movement if there’s the suggestion of an interest rate hike next month.
Sterling movement this week will likely be influenced by further Brexit developments and the performance of data released by the other key global economies, so clients with an upcoming transfer involving GBP will benefit from keeping in touch with their account manager in order to discuss strategy in relation to the timing of their transfer.
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.
It was efficient, felt very secure with the checks made along the line and a very good rate of exchange.
Excellent service. Contacted in the morning transferred funds. My bank in Spain received money the following morning. Brilliant.
We always use foreign currency direct. Completely happy with the service, fast and friendly.
Very good. Very efficient. Excellent rate.