The last month has been tough for the Pound, with the currency experiencing negative movement against most major currencies, with Cable rates reaching the lowest levels seen in 1 year around the low 1.27s and Euro rates temporarily dropping below what has been regarded as a resistant point, of 1.11. The Sterling report below looks into the reasoning behind this weakness with a look to potentially positive movement for the Pound following positive economic data. We've shown in the table the range of exchange rates throughout the past week, with the difference in return when selling £200,000.00.

Currency Pair% ChangeDifference on £200,000
GBPEUR1.25%€2760
GBPUSD1.94%$4920
GBPAUD1.93%AUD $6680

This being said, the last week has seen a resurgence in Sterling confidence with positive movement of almost 2% against the USD and EUR.

A 0.2% reduction in UK unemployment seen in the data released yesterday, contributed to some of the recent gains, with the figure now sitting at 4.0%, which is almost at the lowest level since 1975.

The favourable market movement could have likely been more substantial, if it had not been for the slight drop in average earnings data which saw a reduction of 0.1%.

Economic data this week

There is a good chance for Sterling gains to continue further into the week with a raft of key economic data set to be released.

Key inflation data to be released this morning at 0930, in the form of the Consumer Price Index (CPI) is expected to show a slight increase of 0.1% which could bring confidence for investors.

The results of retails sales figures release on Thursday could also see favourable movement for the GBP, if the figures are in line with expectations with an increase of almost 1.0% for the month of July.

Sterling spikes after suggestions of a change in German stance to Brexit

Brexit latest

There has recently been a stall in more provocative Brexit headlines, with market attention mainly focused on the unfolding financial crisis Turkey, but yesterday Jeremy Hunt called on the EU to change its approach on Brexit negotiations, as the risk of a no deal has risen in recent weeks.

Hunt, who took over from Boris Johnson last month following his resignation, was speaking in Helsinki, marking the start of his 3 day tour of Europe, where he will aim to persuade member states to back Prime Minister Teresa May’s plan for the UK to separate from the EU.

With Brexit developments putting pressure on any substantial growth for the GBP, updates following Hunt’s meetings could be a key to market movement this week and in conjunction with the economic releases over the next 2 days, clients with an upcoming Sterling transfer could benefit from keeping in touch with their account manager, in order to capitalise on any favourable market movement.

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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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. 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.