This Pound Sterling report discusses the factors that could affect GBP exchange rates in order to help you stay informed if you need to make a money transfer.
Sterling has lost 4 cents in the month of June as we move to within 10 days of the EU Referendum, dropping a whole cent on Friday to finish the week in the 1.26’s.
Prime Minister David Cameron appeared on the Andrew Marr show on Sunday morning to reiterate his Remain stance. The Chancellor George Osborne and Cameron wrote articles in the Sunday papers suggesting state pensions and the NHS would be under treat if there was a Brexit. The Prime Minister also mentioned that a Leave victory would result in a difficult situation for the government but he would continue on as PM.
Nigel Farage commenting on what the Prime Minister had said made it clear he thought Cameron was once again scaremongering. Farage when asked what he thought of the potential fallout for Sterling suggested “even if Sterling did drop a few percentage points, so what. We would have a floating currency that would be good for exports.”
Sterling looks set to continue falling in the final run-up to the vote as the result looks set to go down to the wire. I am off the opinion that the GBP/EUR exchange rate could drop down below 1.25 before the end of the week. If you have a requirement to either buy or sell Sterling I would suggest keeping in constant contact with your broker to make sure you optimise your trade.
Mark Carney and the nine person committee will meet on Thursday to discuss the current interest rate. There is almost a zero percent chance of a change being made considering the current situation. However, Mark Carneys speech that follows could result in volatility for the markets especially as he has been so outspoken of the dangers of a potential Brexit following the EU Referendum.
There is a significant amount of data being released in the UK this week. On Tuesday the Retail Price Index, Producer Price Index and most importantly the Consumer Price Index are reported for May. Wednesday the unemployment rate, claimant figures and average earnings are released and on Thursday the Retail Sales Figures will provide an indication to see if peoples spending habits are changing.
For more news on how the EU Referendum could affect your currency exchange, call our team on 0044 1494 725353 or email me at email@example.com.
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