This Pound Sterling update discusses the latest Brexit related news and looks at factors that could affect GBP exchange rates this week. The table here shows the market movements for a number of GBP currency pairings in the last week:

Currency Pair% ChangeDifference on £200,000
GBP/EUR1.12%€2540
GBP/USD1.20%$3104
GBP/CAD2.02%$6720
Sterling threatening new highs

Prime Minister Theresa May over the weekend revealed talks with G20 leaders had been very positive. May was apparently “struck by their strong desires” to form new bilateral trade agreements once the UK had left the EU. Talks with Japan, India and China were all positive, whilst Donald Trump went one step further saying the UK-US trade deal would be “a very very big deal and a very powerful deal”.

Whilst this is not the first time Trump has spoken about future deal with the UK, it comes at a time when May needs reassurances. The announcement of such discussions with foreign leaders did little to the market, with the GBP/EUR rate dropping further into the 1.12’s over the weekend.

Theresa May Faces Resignation Challenge Once More

Brexit Secretary David Davis appears to be coming out as a front runner to replace Theresa May as Prime Minister, with thoughts she may leave the role as soon as the Autumn. A former Tory Chief Whip who is a close ally of Davis at a dinner told other guests that May was finished and she would walk away from the job with claims of ill health.

Unemployment Data and Inflation Hearing

This week the main data releases for Sterling will be on Tuesday with the Inflation report Hearing, which was expected last week. More over there will be Unemployment data on Wednesday along with Average earnings, all these releases could have a major effect on the markets.

The Great Repeal Bill

The Bill will be revealed this week and is the transition of all EU Laws essentially into British law, which will then provide law makers the opportunity to edit and change any laws for the better. Cross bench MP’s are planning to attack this as currently Henry VIII powers allow the Prime Minister to change the statute of 100’s of laws without consulting Parliament.

However, in a ploy to delay Brexit MP’s are planning to force the Government to give them the right to vote on each piece of legislation individually, meaning over 300 separate votes would need to take place taking years to complete all.

This could have a detrimental effect on Sterling which already began to struggle last week after poor economic data. Questions regarding Theresa May and the Repeal Bill this week could cause further losses. If you do have a requirement this week I would consider acting sooner rather than later.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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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.