Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just 30 days affecting Pound Sterling rates when buying £200,000:

Currency Pair% ChangeDifference on £200,000
GBPEUR2.2%€5,050
GBPUSD2.1%$5,450
GBPAUD2.6%AUD $8,840
All quiet on the Brexit front – Is this giving confidence to the Pound?

Will the Pound find support this week?

Sterling hit its best level to buy the Euro since May 2017 at the end of last week after the UK managed to agree citizens’ rights for those living both in the UK and the European Union. The Irish border was agreed as well as an amount for the ‘divorce’ bill.

However, the gains were short-lived as the markets realised very quickly that we are far from any form of resolution. The talks are due to continue again on Thursday and this is likely to be another volatile period for Sterling exchange rates. This will be dubbed as ‘phase two’ of the negotiations and the main topic of the agenda will be trade talks.

This morning the UK releases the latest set of UK Unemployment data as well as Average Earnings at 09:30am. Unemployment levels are getting close to the best levels in four decades which is great news for the British economy.

However, as average earnings have been falling during the last few months then any further signs of this happening could cause some problems for the Pound during the course of this morning.

Retail Sales and UK Interest Rate Decision

UK Retail Sales are due out tomorrow morning and last month we saw a big fall compared to the expectation which highlighted the problems facing the UK economy.

The expectation for November is 0.3% so anything different is likely to cause a movement for the value of Sterling, so make sure you keep a close eye out on the data announcement.

However, the main news of Thursday is likely to come when the latest Bank of England interest rate decision is released. Clearly there will be no change in interest rates or QE but the minutes which are released at the same time could provide a clue as to how the central bank views monetary policy for the time being.

I think there will be a concern owing to the Brexit talks and this could come across with a rather cautious tone so I think we could see the Pound fall against all major currencies depending on how the statement comes out.

Therefore, if you’re concerned about what may happen to Sterling exchange rates towards the end of your week then contact your account manager who will be able to keep you updated.

Thank you for reading my Sterling currency report, if you have any questions about an upcoming exchange I would be more than happy to discuss them – you can contact me with any queries 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.