This Pound Sterling update discusses factors that could affect GBP exchange rates on the coming days. The table below shows the market movements for a number of currency pairings in the last week:
|Currency Pair||% Change||Difference on £200,000|
Yesterday late afternoon Pound Sterling moved from the low 1.15’s to just below 1.16 against the Euro.
After a slow start to the day with the rate dropping due to the tragic attack in Manchester and strong data from the Eurozone, the GBP/EUR exchange rate looked like it might break into the 1.14’s. However at the close of business the rate started to regain the lost ground and this morning the Pound has moved back above 1.16.
The Institute of Chartered Accountants in England and Wales yesterday released analysis suggesting it could cost Britain €5bn to leave the EU. The study said €30bn would be high with €15bn most likely the figure that could be paid. The report considers what the UK should receive as a rebate and the realisation of UK investment in the European Investment Bank.
Whilst the report is a one sided affair, it will come as relief to Theresa May and David Davis who are so far being told to expect a €100bn bill.
The UK’s Gross Domestic Product data will be released tomorrow providing an insight into United Kingdom’s economic activity. There will be a year on year and quarter on quarter release, both of which aren’t expected to change from previous readings.
UK data at the moment when poor, gets received very badly and can cause quite a significant drop in Sterling. Alternatively due to the over shadow of the Brexit negotiations and the looming general election, positive data seems to have less of an effect.
If you do have a long or short term requirement being in contact with your trader as early as possible, will mean they can do the most for you. With the UK election looking tighter than was initially anticipated, a lot could change over the next few weeks.
For an update on how future data releases could affect your currency requirement please do feel free to call any of our currency brokers on 01494 725 353 or email me directly at firstname.lastname@example.org.
The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.
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