Sterling begins what is likely to be a volatile week at slightly improved levels against a number of currencies. Having dipped into the 1.09’s on GBPEUR two weeks ago and 1.26’s on GBPUSD one month ago we are now at nearly 1.12 and 1.29 respectively. More on the economic releases due out this week and the latest on Brexit updates in today's Sterling report. The table below shows the range of exchange rates for a number of currency pairings for the past month, showing the difference in return you could have achieved when selling £200,000.00 during the high and low points of that period.
|Currency Pair||% Change||Difference on £200,000|
Regular readers will know one of the biggest drivers on sterling exchanges rates is Brexit. Breaking news that at next week’s EU Summit Michel Barnier will be given a mandate to finalise a Brexit deal fits with lots of the recent positive commentary about the direction negotiations might take.
The Tories and Labour are however both struggling to appear united on the issue of Brexit, with concern Boris Johnson will mount a leadership challenge and Trade Unions trying to force Labour to back a second referendum. I expect the Pound will continue to be swayed by the headlines and clients with a currency transfer involving the pound may benefit from a quick review with our expert team.
Manufacturing and Industrial Production data is released at 09.30 am this morning, two sets of GDP (Gross Domestic Product) at 09.30 am, and this afternoon.
Tomorrow is Unemployment data and then the all-important Bank of England Interest Rate decision Thursday.
It should be noted there is also the Eurozone Interest Rate decision 45 minutes after the UK decision on Thursday, this could see a volatile period on not just GBPEUR, but also GBPUSD and many others as global markets adjust to any shifts in monetary policy indicated by the Central Bankers.
Aside from Brexit news I think Thursday could be the busiest day of the week for the Pound so if you have a currency transfer involving Sterling it might be wise to get in touch before then to see what options might suit you best.
The EU Summit next week and further meetings in the weeks ahead are the key events for the Pound but we could see well the situation change very quickly with any shock announcement over the EU’s plans, or any potential shake-up in the UK Government.
Despite a recent resurgence, Sterling is still trading at considerable historical lows against most currencies, touching 2018 lows only 2 weeks ago. The possibility of a no-deal is still strong and Sterling traders must factor this in to their plans.
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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