This Pound Sterling update discusses factors that could affect GBP rates this week. The table below shows the market movements for a number of currency pairings since the start of 2017:
|Currency Pair||% Change||Difference on £200,000|
The Pound is coming under pressure against all major currency pairs at the moment, with its performance against the ever-strengthening Euro becoming an almost daily headline.
Anyone watching the Pound's value over the past year or so will be aware of the steep drop in the wake of the Brexit vote, but the Pound has now dropped to a fresh post-Brexit low in recent days with the key topic being whether the Pound will fall below 1.10 or not for the first time in around 8 years.
The reason behind the Pound's fall recently can be put down to fears surrounding how the Brexit talks have begun, with some key figures such as Sir Simon Fraser (a former British diplomat) suggesting that Brexit talks have not begun well due to infighting from within the Cabinet.
This kind of comment brings us back to the snap election earlier this year which was called by Theresa May in order to pave the way for more straightforward negotiations.
She was unsuccessful in her attempts and actually lost seats, which many may argue is why Brexit talks have begun on the back foot and the Pound has lost so much value.
There have been further fears his week after Theresa May recently commented that she does ‘not recognise’ the £36bn bill being mentioned regarding the UK’s divorce bill. The bill has been in the news a lot recently after some prominent Conservative MP’s that voted in favour of Brexit have said that Tax money shouldn’t be used to pay the bill.
Later this morning at 11:00am the Inflation Report Hearing will be released. This release has the potential to move the markets as inflation pressures have been a key talking point since the Pound lost so much value and investors hoped for a rate hike in order to stem these pressures and hopefully give the Pound a boost.
Thursday at 9:30am could also be a busy time for GBP exchange rates as Manufacturing and Industrial Production figures will be released giving us a insight into how the UK economy is performing.
If you would like more information on how future data releases could affect your currency transfer please contact our trading floor on 01494 725 353 or email me directly at firstname.lastname@example.org.
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