Today's Pound Sterling report discusses the impact of Irish border talks between the UK and the EU, aswell as other factors that could impact GBP exchange rates.

The table below shows the market movements for a number of currency pairings in the last month:

Currency Pair% ChangeDifference on £200,000
GBPEUR3.10%€6,920 EUR
GBPUSD3.77%$10,360 USD
GBPNZD3.82%$14,480 NZD
What impact will a Brexit deal have on the pound?

Irish Border Talks Begin

Yesterday the latest round of talks on the Irish border between the UK and the European Union began, with the end goal of trying to find a resolution in the very near term. Last week the transitional deal for after March 2019 was agreed and the Irish border is now considered one of the main talking points before the trade talks start later this year.

Hopefully in the next few days it will become clear how these talks are progressing with any early outcome likely to have an immediate effect on the GBP/EUR rate which currently resides around the mid 1.14s. Should there be a resolution this week then I would not be surprised to see the rate move back above the 1.15 highs of last week.

Another High Street Brand Under Threat

Select fashion is coming under threat as the company who owns the 183-store retailer is seeking a Company Voluntary Agreement to slash rent across its outlets. The retailer also has an enormous online presence selling over 4000 products.

The company is said to employ 2000 people, and this could be another blow for the high street following the demise of a large amount of New Look stores and the entirety of Toys’R’Us.

UK retail isn’t struggling now just merely the high street as consumer spending online continues to rise. The main consequence will eventually be for UK GDP as job figures and spending start to fall as the high street slowly evaporates. This could eventually filter through to Sterling as prospects for rate hikes and inflation increase become a concern.

Considering the pace of some interest rate hikes around the world following positive global growth, the UK could become left behind making Sterling a less desirable currency.

Whilst the Bank of England are expected to raise interest rates at the next meeting the four forecast hikes in the United States following their first last week could start to become a factor on the value of the pound. There is so much that could change in the next few months and weeks, being in contact with your broker will enable you to trade at the best time for you.

For updates on how future data releases could affect your currency transfer call our trading floor on 01494 725 353.

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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.