The pound is finishing 2018 in typical fashion, weaker on the uncertainties of Brexit. Christmas Eve has no UK data set for release so the market should be fairly flat, confined to consolidating the news of the last few weeks.
|Currency Pair||% Change in 1 month||Difference on £200,000|
Increased chances of a no-deal Brexit are weighing on the pound which will continue to remain sensitive to market news.
There is a chance of some unexpected speeches or comments by politicians over the next 72 hours but with traders in the big banks having logged off for Christmas, the chance of anything major is slim.
The market will now eagerly await news on what Brexit means, set for 2019 when parliament get to vote on Mrs May’s Brexit plans. There is no significant data for the UK between now and New Year, save for some Manufacturing data on the 28th December.
With thinner trading volumes the market might be more susceptible to volatility as market movements are exaggerated by the lack of liquidity. 2019 is likely to continue to be a volatile time for the pound and clients with a position buying or selling might wish to use the coming days to formulate a plan.