This market report examines the factors that have the potential to effect your currency exchange over the coming weeks. The below table shows the market movements for a number of currency pairings in the last 30 days:
|Currency Pair||% Change||Difference on £200,000|
A few weeks ago when Theresa May initially announced that the UK will have a snap general election this caused the Pound to hit a 5 month high to buy Euros with Sterling. Prior to the announcement the Pound was struggling with the uncertainty surrounding Article 50.
If the current government is voted back in this typically results is Sterling strength vs all major currencies as it means business can carry on rather than hold back if a new government is announced. The Tories are showing a clear lead and as demonstrated in recent local elections it appears at the moment it is a one horse race.
Therefore, it could be argued that we may not see the boost for the Pound that some may expect as it could be suggested that exchange rates have already priced in a Conservative win.
Indeed, one important factor immediately following the election result is that the Brexit talks will be able to start. EU Chief Executive Jean Claude Juncker has already stated that ‘real talks’ will begin after the election and I think this could cause a problems ahead for the Pound once negotiations start. With less than two years of negotiations still to go we could be in for a rocky ride ahead.
UK GDP data for the first quarter showed a revised down figure of 2% vs the expectation of 2.1% and this caused a fall for Sterling against all major currencies during yesterday morning’s trading session.
However, the fall was only short lived as Total Business Investment for the first quarter which measures the total amount of expenditure made by private firms was higher than the consensus of 0.6% compared to the previous quarter of -0.9%.
With a Bank Holiday in the U.K on Monday this means trading lines will be closed so be wary that any imminent exchanges you have will need to be carried out by today or you would like to make sure that your funds arrive well in time for the end of the month.
Thank you for reading my Euro currency report, if you have any questions about your currency exchnage please feel free to get in touch directly here, I will be glad to assist you personally.
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.
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