Sterling exchange rates have been volatile lately, but following some positivity around Brexit is now the best time to buy currency with the Pound? Daniel Wright looks at this and the events to watch out for this week. The table below shows the market movements for a number of currency pairings during the last week:
|Currency Pair||% Change||Difference on £200,000|
Sterling had made a positive start to the week against all major currencies, seeing a lift of almost 1% against the Dollar, 0.5% against the Euro, 0.5% against the Australian Dollar and nearly 1% against the Canadian Dollar by midday yesterday. This was once again short lived as Sterling struggled throughout the afternoon, showing how important it is to let your contact here at FCD know if you have an exchange that you need to carry out soon. With the Sterling/Euro exchange rate in particular having being stuck in a tight range of 1.12 – 1.1495 over the first two months of the year, rates are currently above average which still makes it a particularly attractive time to buy.
The reasons behind the recent lift are down to a heightened chance of an interest rate hike coming once again for the UK this year, possibly as soon as May, and also the fact that there have been no major negatives thrown up with Brexit in recent times, thus bringing a little confidence to investors regarding the Pound.
In terms of UK economic data, this does not really heat up until overnight tonight when we have Consumer Confidence figures out just after midnight. This is a measure of the general feeling for the Consumer within the UK. A good reading can give Sterling a lift and a drop off in confidence can lead to Sterling weakness, expectations are for a slight drop off so be wary that the good rates we are seeing currently for Sterling may not still be as favourable this time tomorrow.
Thursday morning we have manufacturing data along with mortgage approvals. Both of these data releases are expected to be fairly steady but be wary of any surprises there as data does not always come out as analysts have predicted.
Friday is possibly the biggest day of the week, we have construction data released at 09:30am, Governor of the Bank of England Mark Carney speaking at 10:00am and then Prime Minister Theresa May speaking regarding the Government's current Brexit position and the issues of the country’s foreign policy.
Investors and speculators alike will be hanging off of her every word for any hints on progress, or clues of exactly which route the country is planning on taking as we move into the next stages of these Brexit negotiations.
Jeremy Corbyn also spoke yesterday and although this wasn’t a huge market mover it is still important news.
He confirmed a number of factors surrounding Brexit including that Labour will not propose a second referendum but that Labour will propose a meaningful vote in Parliament before any final deal is confirmed.
This may not mean a great deal now but later down the line this does mean that there will be an extra hurdle for the Government to overcome before finalising anything so this will be one to watch.
For more information on how events could affect your currency transfer call our currency brokers on 01494 725 353 or email me directly at email@example.com.
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