After two days of disappointing data the Pound has managed to hold its ground and continue to trade north of 1.40 vs the US Dollar and 1.14 vs the Euro.
Yesterday it emerged that UK Manufacturing data is at a 1-year low, although the figure is still north of the average over the past 10-years mostly owing to the weaker Pound.
Today we’ve found out that the UK’s Construction industry slumped last month due to the heavy snow, although the fall was much greater than the markets had predicted.
With Sterling holding onto its recent gains after the Brexit transitional deal arrangements, despite a barrage of weak data, I’m expecting to see the Pound strengthen throughout the year as it appears to be resolute despite weak data. If we consider how much the Pound fell by after the Brexit vote I think it’s fair to say the Pound is still oversold which is perhaps why weak data isn’t having a great impact.
Tomorrow there will be a release covering the UK’s most important sector, the services sector which covers over 2/3’s of the UK economy. Despite increased sentiment surrounding the Pound now that there will likely be a rate hike next month, I do think that weak data in this sector will result in a weaker Pound.
The data comes out at 9.30am so do feel free to get in touch early if you wish to plan around this.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on email@example.com and I will endeavour to get back to you as soon as I can.