This Pound Sterling update looks at the cost of sending money overseas this week, discusses the lasted EU Referendum news and the possible outcome of a Brexit, as well as covering some of the factors that could impact any currency transfer you are looking to complete.
Sterling lost some of the ground it made against its counterparts yesterday, highlighting just how volatile the markets are going to be in the lead up to the referendum on the 23rd June.
The latest polls show the ‘remain’ camp still ahead but only slightly. In my opinion, there does seem to be a correlation with Sterling strength and positive news regarding the UK staying in the EU.
Yesterday George Osbourne, Chancellor of the Exchequer for the UK reported that a Brexit could cause a year long recession. Analysts have confirmed that although this is a worst case scenario, the impact of a Brexit on the economy would likely cause a recession although it is unlikely how severe the effects would be. Furthermore, in the same report George Osbourne claimed that 820,000 jobs would be lost in the next two years and the UK’s economic growth would be between 3 – 6% lower.
Even though the GBP/EUR rate slightly dropped yesterday, I feel this was more Euro strength than Sterling weakness. Yesterday, Germany released its latest set of Markit data, which came in better than expected. There was no economic data out for the UK yesterday and GBP/EUR is still above 1.29, some of the best levels we have seen for buying Euro in months.
Public Sector Net Borrowing figures will be released today, and the expectation is for there to be a growth in the account deficit, which could result in Sterling weakness. This could un-do some of strides Sterling has made recently against its counterparts.
For updates on data releases that could impact a currency exchange please call our currency brokers on 01494 725 353 or email me directly at email@example.com.
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