Personally, however, I think this to be rather short lived and expect the politically uncertainty to return and with that pressure on the Pound’s value. Brexit uncertainty continues to drag on with little progress on what UK PLC will look like in just 24 months’ time. The Irish border which first started to be a talking point over 6 months ago still remains a focus point.

All this lack of progress is putting more and more businesses under pressure, many holding back investment as a result, which is resulting in a sluggish economy. Rolls-Royce has now confirmed that it will move some of its base to the EU to avoid any issues arising in the event of a cliff-edge Brexit.

The below table shows the market movements for a number of currency pairings in the last month:

The interest rate decision is now only a week away, if the BoE does raise interest rates by 0.1% exchange rates may well go up but probably only by a small degree. If they don’t hike and fuel speculation that they won’t for the remainder of the year expect Sterling rates to fall down by a much bigger degree.

Bearing in mind that Brexit uncertainty is still as high as it has been plus poor data releases, the argument to raise rates are weakening on nearly every economical release. 

The UK economy grew at just 0.1% in the first quarter of the year, well below expectations and its slowest pace since 2012. Plus recently UK car production fell 13% year-on-year in March, amid concerns over falling diesel sales and the impact of Brexit on exports.

UK Housing market expected to add to Sterling’s wows

Next on the horizon before the interest rate decision on Thursday will be Tuesday with an update from the housing market in the UK. This is data for April and personally I don’t hold much optimism of a positive figure. Both data from February and March showed a real slowdown in the sector which if confirmed continued into April could result in a weaker Pound as the UK returns from the May Bank holiday.

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.

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.