Sterling is lower as the enthusiasm of Brexit negotiations passing to the much publicised ‘Phase 2’ wears off. This week a series of headlines focusing on the EU’s stance in the next round of discussions has put sterling back under pressure as the hard realities of Brexit are brought back to the top of the agenda. Stumbling blocks in the May government too with Damian Green being sacked for pornography claims, will do little to revitalise the pound. Some key data today and tomorrow might lift spirits but all in all the recent spikes for the pound could turn out to be very short lived as we approach 2018.
Today is the latest PSNB (Public Sector Net Borrowing) figures and then tomorrow UK GDP (Gross Domestic Product data) which could give the pound a small boost but overall I do expect that sterling will soon be back at the mercy of the UK’s lack of coherency over its position on Brexit. If you have a transfer to make buying or selling the pound the previous belief that the pound will now rise on into 2018 from the improvements we have finished 2017 on, could be in jeopardy.
Market expectations for the pound are centred around Brexit, the pound is essentially a barometer of the markets approval on the progress on Brexit. If you have a transfer buying or selling the pound in 2018 then I would personally suggest making plans sooner than later as the volatility we have become so used to in the last few weeks is not going away anytime soon!
2017 has seen progress on the Brexit which has helped the pound to rise against most currencies but with Brexit still to be finalised there is plenty of time to see this move back against you. For more information at no cost or obligation please speak to me Jonathan Watson on firstname.lastname@example.org.
Thank you for reading and I look forward to hearing from you. Merry Christmas!