This GBP market report looks at the factors that could affect Sterling exchange rates this week. With the currency markets moving every two seconds, it can be vitally important to understand what could affect rates. You can keep track of rates at our live exchange rates page.

After a slow start to the beginning of the week, Sterling seems to have found some support against the Euro and continues it’s drive against the Dollar. Since the start of the year, GBPEUR has gained nearly a cent and a half and GBPUSD has gained nearly 4 cents. To put this into a monetary perspective this is nearly €2,500 more and almost $9,000 more on a typical £200,000 transfer. The key question for any clients looking to purchase foreign currency with Sterling is will this upward trend continue?

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

Currency Pair% ChangeDifference on £200,000
GBPEUR1.31%€2940
GBPUSD4.33%$11580
GBPNZD3.26%NZD $12160

So far this year, Brexit talks seem to have not gained the media’s attention and I believe that the markets and investors are waiting until more information is released regarding the next phase of talks. If the talks are positive this is likely push the GBPEUR threshold up, to levels of 1.1450 – 1.1500 and if this news is negative I would predict 1.1080 to 1.1150.

Which direction the Pound will head in remains to be seen, with analysts and financial institutions opinions split between the Pound making a recovery and slumping again in the next few months to come. Data will now be a key focus for investors moving forward to see if the UK’s economy can match that of the economic growth in the Eurozone, the USA and following last night's figures China. If these economies continue to outperform the UK’s then I would expect Sterling to slip.

Sterling’s performance seems to be mainly driven by Brexit developments.
Retail Sales could create volatility

Retail Sales could create volatility

With this in mind, today’s retail sales report is likely to generate some attention as they will hopefully give an insight into the rising prices of goods in the UK following Brexit and how this is affecting the consumer.

A drop of -0.6% is expected after the Christmas period and Black Friday spending, however if this is worse than expected I would expect some losses for Sterling.

Analysts have added that because Black Friday is relatively new to the UK, seasonal adjusting for this data release has become very difficult. Keep in contact to make sure you are covered.

For more information on how future data releases could affect your currency transfer call our experienced team of brokers on 01494 725 353.

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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.