Last week’s end saw much anticipated gains for the Pound against both the Euro and US Dollar. The difference in last week’s high and low could have earnt an extra €1410 or $2,040 on a £100000 transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low over the last month:
|Currency Pair||% Change||Difference on £200,000|
In the second week of April, the UK Manufacturing and Industrial Production data was lower than expected compared to past months however attributed to the “Beast of the East” weather conditions.
On the Brexit front, the Pound is seemingly interpreting no news as good news for the moment. This contributed to the Pound's gains last week. On Sunday, the People’s Vote held a rally to call for a public vote on the final Brexit vote. 1,200 people were at the event, including MP’s, celebrities and business leaders, whilst pro-Brexit campaigners gathered outside. At present, it seems unlikely that a people’s vote on the final deal will take place at all. The UK will formally cease to be a member of the EU in March 2019 and although the transitional period has been extended to 31st December 2020, there will be a Commons and Lords vote to approve whatever deal is agreed at the end of the two-year process.
There is a possibility that MPs could block Brexit, but the EU side would need to agree also. This would mean leaving the EU without a deal, rather than halting negotiations. Both the Conservatives and Labour have ruled out a second referendum.
One hopes that Theresa May’s government and the EU reach a final deal on the Brexit terms by October as I fear the contrary – as well as movement for a people’s vote - would weaken the pound.
The next Brussels summit - on June 28-29 - looms large and I expect the GBP to fluctuate more as and when new information is made available. In the meantime, we are experiencing 11-month highs of GBPEUR and may now be the time to act.
UK labour market is due from tomorrow. The labour market report for March – will include the closely watched average weekly earnings indicator. The average weekly earnings excluding bonuses are expected to rise 2.9% year on year in three months ending in February, rising faster than inflation for the first time since January 2017 when inflation reached 1.8% year on year while wages rose 2.2% year on year. The unemployment rate is expected to fall to another multi-decade low of 4.1%.
This combined with strong inflation and retail figures on Wednesday and Thursday respectively should see the pound strengthen further. We strongly recommend touching base with your Broker to capitalise on movements in your favour.
All the staff I spoke with were helpful ,courteous and knowledgeable. The service is efficient and FCD make the exchange process hassle free.
Personal, attentive. What more can I say? First Rate.
Efficient, friendly, personable – I have used this service several times and will not hesitate to call on them the next time a foreign currency transfer is required.
Quick, competent and friendly: a reassuring excellence of service, which I heartily recommend to every potential client.