This morning UK inflation numbers remained at 3%. Some forecasters were predicting this and others suggesting a fall to 2.9%. The pound has increased in value slightly against the euro and US dollar, however nothing that investors will be over excited about.
All eyes now turn to Foreign Secretary Boris Johnson’s speech tomorrow. UK Prime Minister Theresa May announced at the weekend that key politicians that are heavily involved with Brexit will give Brexit speeches in the upcoming weeks. Mr Johnson’s speech has been labeled as a speech to unite remain and leave voters. This speech I expect could put pressure on the pound as no politician since the Brexit vote has inspired remain and leave voters to think off the same page. Furthermore I expect Mr Johnson to veer off topic and again this could put pressure on the pound.
Later in the week UK Retail Sales numbers are to be released for January. A pick up is expected as December’ figure was extremely poor. The argument is that November’s figure exceeded expectation due to the sales, and people purchased Christmas presents early. I expect this months figure to exceed expectation which could give the pound a boost at the end of the week.
It’s crucial when buying or selling the pound to analyse both the currencies you will be trading, as your 2nd currency will also have an impact on your decision. For example European GDP numbers are set to be released Wednesday morning and its likely we are going to see a slight rise, therefore buying euros may be cheaper today than tomorrow. Where as US inflation is set to be released at 1.30pm tomorrow and set to show a fall. If this is the case buying US dollars tomorrow afternoon may be cheaper.
Feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF, GBPEUR etc) the reason for your conversion (company invoice, buying a property), timescales and I will email you with my forecast for the currency pair and the process of using our company email@example.com. Dayle Littlejohn
** If you are already using a brokerage, especially online platforms, but would like a comparison and my help with timings (this is where you can make further savings), I am more than happy to do this for you. Feel free to email me the currency pair you are trading and the volume and I will respond with the live price **