The pound had a volatile day yesterday, oscillating between 1.0892 and 1.0966 on the interbank GBP/EUR exchange rate. The late afternoon recovery followed signs that Angela Merkel might support changes on the Irish backstop.
Sterling had fallen in yesterday morning’s trading, on the initial feedback from the EU that Boris Johnson’s wishes to amend the Irish backstop were unworkable.
Boris Meets Merkel today in Berlin and then Macron Thursday, yesterday’s volatility is a reminder of the delicate nature of Brexit and how sensitive the pound remains. These meetings have the potential to yield more headlines on Brexit, which we know can influence the pound.
Sterling has now recovered back from many of the lows of the last few weeks and at the time of writing is up 2.81 % against the euro, up 1.03 % against the USD and 1.89 % up against the Australian dollar on the interbank exchange compared the lows on these pairings over the last 3 weeks. To keep abreast of any future short sharp movements, you may wish to make your account manager aware of any future sterling currency transfers you might be considering so we can alert you to changes.
Today’s UK economic data is the latest Public Sector Net Borrowing data, released at 09.30 am. Government borrowing has decreased in recent years, and sterling rates could be influenced by any shifts in the data released.
With a light economic calendar this week for the pound, there are other considerations ahead for the currency. Regarding a General Election, betting website oddschecker.com puts the probability of a general election in 2019 at between 66% and 80%. Historically speaking, we know the uncertainty of a political situation like an election can see the pound lower, as it has done ahead of the last 3 General Elections in 2010, 2015 and 2017.
Jonathan Watson as ever, ensures a smooth, reliable and trustworthy transaction for the second time of service! Delightful to deal with – efficiency personified. Thank you Jonathan. Would recommend highly – 5Star.
Excellent initial guidance, and during the transaction regular communication and updates. Dealing with Jonathan Watson was a pleasure. Very reassuring.
Jonathan Watson provided very helpful advice throughout the process, as well as immediate responses to our inquiries. He and his team were patient and thoroughly professional, which helped us through some stressful moments following the sale of our property in France.