Manufacturing production figures, GDP estimates and Mark Carneys speech are all due today which could set the tone for Sterling movements.

We are now over a week since the long awaited triggering of Article 50 and the focus for Sterling exchange rates is now turning back toward what is happening in the economy. We have a number of very important data releases during today and by the afternoon we could see some very different rates for the Pound vs the Euro as well as against other major currencies. The UK releases Industrial & Manufacturing Production data at 9:30am and at the same time we see the release of Trade Balance for the UK.

Both figures have been inconsistent recently so this could cause a lot of movement for Sterling depending on how the data comes out.

UK GDP for the fourth quarter of 2017

Bank of England governor Mark Carney is also due to give a speech at 10:00am this morning. His focus is likely to be on the possible impact of how the Brexit negotiations may go and I think this time round his tone may be rather bullish and he may shrug off concerns.

However, if he is too confident in the economy then this could be perceived as irresponsible so I expect him to add a little caution. Personally, I expect the Pound to receive a boost during the speech so if you have a currency transfer to make this period could provide an opportunity.

Later on this afternoon the National Institute for Economic and Social Research publishes its latest UK GDP figures. With UK Retail Sales coming out better than expected recently then I expect with their inclusion the data out today will be positive and I think this could see Sterling end the week on a high.

Both May and Tusk have agreed 'that the tone of discussions had been positive on both sides', and agreed they would seek to remain in 'close touch as the negotiations progressed.’

How will Brexit talks go?

Theresa May has met with European Council President Donald Tusk prior to the beginning of the Brexit talks and this has been taken positively after some problems surrounding the Gibraltar issue. Both May and Tusk have agreed ‘that the tone of discussions had been positive on both sides, and agreed they would seek to remain in close touch as the negotiations progressed.’

Last week the issue became a little frosty so the change in tone has reassured the markets. The meeting which lasted about two hours has gone well but with two years of negotiations still to go we could be in for a rocky ride ahead.

To learn more on how todays economic releases could impact your buying or selling requirement, feel free to give us a call on 01494 725 353 or email me at teh@currencies.co.uk.

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