After increasing by as much as 4% since the start of the year against the Euro the Pound has again hit uncertain waters ahead. Yesterday it was announced that European Commission officials have rejected the proposal by the City of London to create a free trade deal post-Brexit. The deal was to allow Britain full access to EU markets and having been rejected this caused the Pound to fall across the board.
The below table shows the market movements for a number of currency pairings in the last 30 days:
|Currency Pair||% Change||Difference on £200,000|
Following the referendum vote to leave the European Union over 18 months ago a lot of companies within the UK have been looking at options to maintain trade between the UK and the continent. The idea was to allow cross border trade as well as preserving ‘regulatory standards in line with the best international standards.’
With London such a global powerhouse this is clearly a concern for the UK economy and part of the reason for Sterling’s wobble yesterday. However, clearly as it is so important to the future of the UK then I’m sure we have not heard the last of this particular topic.
Prime Minister Theresa May is currently in China discussing potential trade with the world’s second largest economy. Theresa May has committed her future by claiming ‘there is a long-term job to be done…First and foremost, I’m serving my country and my party.’
There have been recent rumours increasing that there are some backbenchers looking to surmount a challenge to the leadership. A total of 48 members would be required for this to take place. She is committed to reach a positive deal with the UK and the EU and with phase 2 of the Brexit negotiations due to take place in March, I think we could see a lot of volatility coming ahead for Sterling exchange rates.
Tomorrow morning brings with it the latest PMI Construction data for January which has been rising recently so another positive reading could see the Pound make some small gains in the morning.
Therefore, if you’re in the process of making a currency transfer then contact your account manager who will be able to keep you updated.
For more information on how future data releases could affect your currency transfer, call our team of experienced brokers on 01494 725 353 or email me directly at email@example.com.
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