The Pound pushed back towards a seven month low against the US Dollar, and hit the lowest point in almost 2 weeks against the Euro during yesterday’s trading. This was largely attributed to investors taking the profits made since last week’s positive Bank of England announcement (that one more member of the Monetary Policy Committee had voted for a rate hike) which meant that the chances of a rate hike in the UK seemed more likely over the coming months.The Sterling report below discusses the impact of this on Sterling, and in the table below the range of exchange rates for a number of currencies during the last month is shown.

Currency Pair% ChangeDifference on £200,000
GBP/EUR1.5%€3,390
GBP/USD2.7%€7,160
GBP/CAD3.8%$13,070
Brexit Deadline Approaches – Sterling Falls

Bank of England members speaking today

This morning from 10am, two of the Bank of England’s Interest Rate setters Jonathan Haskel and Ian McCafferty will be speaking and could cause some movement for Sterling exchange rates. Ian McCafferty was one of the members voting for a hike at last weeks interest rate meeting, so any positive signals towards a hike in August from either member could see the Pound strengthen once again.

The latest polls are suggesting over a 50% chance of the BoE raising interest rates by 0.25% at their next meeting in August, and over 90% chance of a hike happening before the end of the year.

Bank of England Governor Mark Carney will be speaking at 9.30am on Wednesday following from the release of the latest Financial Stability Report, which will be keenly watched for by investors. This report should provide an overall outlook on how the UK’s financial sector is performing, and if Carney makes any positive hints towards changes to monetary policy in his speech, I would expect the Pound to recover from yesterday’s losses pushing GBP/EUR back above 1.14.

EU Summit and GDP data at the end of the week

Thursday and Friday will be pivotal for GBP exchange rates after a relatively quiet start to the week in terms of economic data. The EU Summit will be held on Thursday and Friday, where the UK will be hoping to make inroads to securing a favourable Brexit deal with the EU. Gross Domestic Product (GDP) figures will be released at 9.30am on Friday, where the economy is expected to have grown by just 0.1% for the first quarter of 2018, matching the previous reading and the slowest growth rate in 6 years. It may be beneficial to let us help you put a plan in place for any upcoming Sterling currency transfers ahead of these key dates.

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.