This Pound Sterling update discusses the latest Brexit news and the factors that could affect GBP exchange rates this week. The table below shows the difference you would have received when buying £200,000 at the high compared to the low during the last month. For current live exchange rates click here.
|Currency Pair||% Change||Difference on £200,000|
After Brexit Minister David Davis over the weekend suggested that the deal agreed with Ireland was not enforceable, Sterling yesterday made very little attempt to return to the 1.15s seen on Friday following the announcement on border negotiations. Whilst the rate yesterday didn’t fall below the 1.13 level there was a difference of almost 2 percent from last week’s high.
Davis yesterday clarified his comments suggesting that a story published by the Times newspaper was “one of the most convoluted stories he’d seen”. He went on to clarify that the UK was committed to having a frictionless border with Ireland and the Irish PM later responded saying he was “delighted” by the comments.
There wasn’t really a movement on the market following the comments from either Davis or Irish PM Varadkar which suggests markets are waiting to see the EU Council vote at the end of the week.
Having seen the rate bounce up following the prospect of Brexit progressing last week, the end of this week could once again bring around a movement to 1.15 or above for clients looking to buy Euros with Sterling.
Sir Vince Cable the leader of the Liberal Democrats has urged Labour back benchers along with some Conservatives to vote on an alternative to the EU Repeal Bill, which would keep the UK in the single market. The Lib Dem amendment would force the UK to remain within the Customs Union and the Single Market, which the UK Government has already ruled out. The vote is unlikely to pass and would involve an enormous amount of MP’s changing their current stance.
Whilst there is expected to be little change, there has been no shortage of unexpected events when it comes to Brexit. If you’re waiting to complete a currency transfer then make sure you’re in contact with your broker, who can alert you to any movements in your favour.
The latest Consumer Price Index data for the UK will be released this morning at 9:30am. The level is expected to remain at 3% which is the top-level target for the Bank of England. The central bank will also provide their latest interest rate decision on Thursday, the last meeting the Monetary Policy Committee chose to raise rates by 0.25% to 0.5% which was the first rise in 10 years. There isn’t expected to be any changes to the rate tomorrow, however Governor Mark Carney could provide insight into the central banks plans.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353.
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