Over the weekend reportedly 100,000 people marched through London to demand a final vote on Brexit a week after the Government agreed that MP’s will have a vote on a Brexit deal if there is one agreed with the EU. The March was addressed by Green Party leader Caroline Lucas and Lib Dem Leader Vince Cable however May nor Corbyn were in attendance. The Sterling report below looks into the way that this pressure could impact the Pound in the midst of ongoing Brexit negotiations. The table below shows the range of exchange rates you could have achived during the past week, and the potential Sterling return when selling £200,000.00 at the high and low points.
|Currency Pair||% Change||Difference on £200,000|
Yesterday’s papers may have further added pressure to Theresa May as Defence Minister Gavin Williamson is reported to have threatened to break the PM if his department doesn’t receive £20bn. In a time where May is trying to focus on Brexit and last week announced major investment into the NHS. Williamson clearly isn’t happy that the military are still facing cuts. From the UK’s perspective more in house fighting amongst Conservative Ministers only adds further concern and uncertainty as to they can agree on a Brexit deal.
Sterling at the moment is only able to gain little support for itself, which was seen last week off the back of the Bank of England’s interest rate vote. The markets jumped into the mid 1.14’s as the committee members vote was announced. The fact the rate didn’t rise above 1.145 suggest the 1.16 high in the last 9 months looks unlikely to be hit again.
Governor of the Bank of England Mark Carney will speak on Wednesday morning, which always has the potential to be a market mover. Last week the BoE Monetary Policy inspired a mini rally for Sterling following the 5-3 vote to keep interest rates on hold, this was a change in voting from 6-2 the previous vote, suggesting a hike is getting closer. Carney therefor may provide some insight into the Banks plans.
On Thursday the latest Consumer Confidence will be released and considering the Retail Sales were positive earlier in the month, this could well also follow trend. Finally, on Friday Q1 GDP data will be released along with mortgage approvals for May, all expected to show improvements from the previous readings.
Make sure that if you do have an upcoming requirement you’re in contact with your broker as once again this week we could see significant market movements at any point.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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