Today's Sterling report looks at the current situation with exchange rates and, during what could be an important week for the Pound, the events that could affect Sterling. The table here displays the difference between the high and low for a number of GBP pair in the last month:
|Currency Pair||% Change||Difference on £200,000|
Speaking outside Downing Street yesterday, Michel Barnier the European Union’s chief negotiator offered a harsh reminder to the UK by stating that trade barriers would be unavoidable if the UK chose to leave the customs union, amid claims of disunity within the Conservative Party.
Theresa May now faces a difficult task of balancing the interests of her party and cabinet whilst remaining under pressure from the public for Theresa May to outlay her plans for what she wants ahead of the next round of negotiations, which are forecasted to be particularly difficult. Michele Barnier said that time was of the essence now to get things accelerated as this round of the negotiations covers some sticking points such as the rights of EU nationals arriving after the referendum back in 2016. I would expect this to be an extremely volatile period for Sterling as we enter the second round of negotiations.
Yesterday the Pound took a fairly large hit following a weaker than expected reading on from the services report. Januarys’ services report showed a 16-month low yesterday, with most service sector firms citing Brexit-related uncertainty as a key factor for clients not choosing to spend. Service based industry makes up around 80% of the UK’s economy, which is why today’s release had such an impact on Sterling.
Today’s slip meant that the composite PMI for the UK fell to 53.9 from 54.9 from December due to the recent fall in confidence in the manufacturing sector and construction surveys. Analysts have now started to question the future growth of the UK economy.
This week’s main focus will be the UK’s Bank of England MPC meeting and inflationary report hearing scheduled for Thursday. Whilst the event itself isn’t scheduled to bring any fireworks, the later hearing could. In BoE Governor Mark Carney’s last appearance he commented that the UK was preparing to upgrade its forecasts following a pick up in the global economy and the UK’s economy.
Any positive tones in his speech could provide Sterling with a very welcomed boost amidst the political uncertainty at present and shouldn’t be overlooked by any clients looking to buy currency with Sterling this week.
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.