This GBP report looks at some of the factors that are likely to affect exchange rates this week. The table here displays the market movements for a number of GBP currency pairs during the last week:
|Currency Pair||% Change||Difference on £200,000|
The Members of the House of Lords will today debate the EU withdrawal bill, yesterday it was revealed that the Lords Constitution Committee believe it will be re-written. The peers will debate the current bill over two days and are expected to suggest there needs to be substantial changes. The bill in its current form is thought to risk undermining legal certainty, when EU law comes into transition as UK law.
It is no secret that the House of Lords has a large remain supporter swing and Theresa May could face another challenge trying to get this bill through as law. There is no doubt that all the concerns raised and sent back to the House of Commons for MP’s to discuss could see the Government lose on several amendments.
Sterling yesterday fell to a one week low against the Euro with the mid-market rate falling back into the mid 1.13s.
Considering the Sterling spike at the end of last week was arguably down to Brexit optimism beginning to grow, the debate today could certainly take the shine of the recent gains.
The boost for the Pound last week lasted only 3 days and saw the rate touch an 8-month high. Considering how quickly the rate lifted and dropped, making sure you’re in contact with your broker is key to maximise your funds for a transfer.
The latest Consumer Credit and Mortgage Approvals data will be released this morning both of which can be indicators for economic performance. Later in the week we will also see Consumer Confidence data and finally Purchasing Managers Index Construction figures, all of which can have an effect on the markets.
Later this afternoon Bank of England Governor Mark Carney will speak which normally mean Sterling could suffer. Carney in previous speeches talks down the UK’s position being more wary than positive especially with the uncertainty surrounding Brexit. His comments today could certainly help the trend of Sterling weakness keep going.
For more information on how this week's events could affect Pound exchange rates call our team on 01494 725 353.
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