This update examines factors that could affect GBP exchange rates this week. The below table shows the market movements for a number of currency pairings in the last 30 days:
|Currency Pair||% Change||Difference on £200,000|
The past 24 hours has been a volatile time for Pound Sterling, with it hitting a seven-year low against the Euro to 1.0938 prior to the release of UK unemployment and wages data as investors sold off the currency in expectation of equally soft results to that of inflation on Tuesday.
However, with the unemployment rate falling to 4.4%, a new 42-year low, and average earnings up 0.1% on expectations we saw GBP/EUR rebound more than half a cent, currently sitting at just below the 1.10 barrier.
Over the coming days and weeks, the Government will be releasing an estimated twelve “position papers” setting out their intentions, aims and proposals for the Brexit process. Two have been released so far, the first has covered how the Government intends to deal with the Northern Ireland border.
The second and most recent of which, released yesterday has revealed the Government’s proposal for people born in Northern Ireland currently holding an Irish and British citizenship to be allowed to retain both after the UK departs from the EU.
Personally, I believe these proposal papers are increasing clarity over the Government’s Brexit position will help relieve some of the downward pressure in the short term currently holding down GBP against its major counterparts.
This morning at 9:30am we see the release of a host of retail sales data for the UK, with expectations of a sharp slowdown across the board already priced into the market, if retail sales releases come in higher than expected we could see a short-term spike for our well-informed clients with a Sterling selling requirement to swiftly act upon.
If you would like to learn more about data releases that could affect your currency transfer, please call our trading floor on 01494 725 353.
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