This week markets eagerly awaited UK Prime Minister Theresa May’s Friday afternoon speech. The speech has been received well within the UK and from MPs within the Conservative party, however the Europeans are not impressed and believe Mrs May continues with the approach of ‘having your cake and eating it’.
The purpose for the 7000 word speech was to unblock trade talks which are supposed to start at the end of the month. Clarity has been provided and ultimately Mrs May is demanding that the UK have a bespoke deal. Europeans have and will continue to call this cherry picking. To discuss the speech in more detail and how the speech will impact your exchange rate feel free to email me directly (Dayle Littlejohn) email@example.com.
The pound lost value from Wednesday all the way through to the close of play on Friday and I expect to see new support and resistance levels for the pound in the upcoming weeks. Unfortunately for people buying a foreign currency the support levels will be lower, meaning you will be receiving a worse exchange rate.
The question now is will trade talks begin later in the month, or could there are actually be no deal? If there was no deal, I expect the pound would plummet like a stone. Therefore anyone that is a buying a foreign currency in the upcoming months and are close to budget should make arrangements this week.
However, as we have come so far with the EU I expect negotiations to continue and eventually the UK will give in to more of the EU demands which will pave way for trade negotiations. The currency company I work for helps clients when it comes to exchanging currency. Quite simply we beat UK banks and brokerages exchange rates. For a quote please email firstname.lastname@example.org with a brief description of your requirements.
When buying or selling pounds, you need to analyse the other currency that you will be converting. This week there are many key data releases to look our for around the globe, here are a few.
Monday the US release Markit Services data, Tuesday Australia release their interest rate decision followed by a speech by Governor Philip Lowe, European GDP and the Canadian interest rate decision will be released Wednesday, the ECB will release their latest minutes Thursday and the UK will finish the week with Industrial and manufacturing production numbers on Friday.