It appears that the Pound has been heavily impacted this week by previous comments made by trade secretary Liam Fox last weekend. Today's Sterling report looks into the lasting implications of Fox's comments on the Pound despite positive economic data from the UK. The table below shows the range of exchange rates during trading yesterday, highlighting the importance of timing your transfer to maximise your return.
|Currency Pair||% Change||Difference on £200,000|
With little data out this week to help Sterling, it seems as though investors have sold the pound this week as the prospect of the UK’s leaving the EU without a trade deal increases.
In my opinion, Brexit anxiety is likely to dominate the pounds value until Parliament return from their summer break on September 4th. It will be interesting to see if Sterling’s fortunes and value change when Theresa May takes Brexit by the reigns.
Yesterday, reports emerged that the EU could provide the UK with concessions on the Brexit deal, namely access to the single markets for goods whilst opting out of the free movement of people. In return, Theresa May would have to replicate all EU environmental, social and customs rules.
This is expected to be discussed in more detail at the first meeting since UK went on summer recess. This morning, the Pound seems to have strengthened ever so slightly on the back of this news, if positive reports such as these continue, the Pound could start to find some support in the up and coming weeks.
Personally, I think clients buying foreign currency with sterling will have to be prepared to move quickly and today could give investors and clients alike a brief window of opportunity that shouldn’t be taken lightly – Q2 Gross Domestic Product. Figures.
The second quarter figures are expected to show an increase from 0.2% to 0.4% and the yearly figures expected to increase 0.1%. This is likely to be Sterling positive if the data comes out in line with predictions. England’s fortunes at the world cup combined with record temperatures through out June is predicted to help these figures. However, clients should be weary of the possibility of the data being a disappointment. The Bank of England’s latest report was dovish, with the pace of rate hikes much slower and less than many investors had been hoping for, with slow growth (GDP) the main reason.
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.
It was efficient, felt very secure with the checks made along the line and a very good rate of exchange.
Excellent service. Contacted in the morning transferred funds. My bank in Spain received money the following morning. Brilliant.
We always use foreign currency direct. Completely happy with the service, fast and friendly.
Very good. Very efficient. Excellent rate.