The pound has made small gains across most of the major currencies today ahead of eagerly awaited UK retails sales numbers released tomorrow. The data should make for an interesting end to the week although expectation is for a sharp drop in the numbers. The forecast is for a fall to 0.9% in January down from 1.4% the month prior. Any deterioration could see the pound come under renewed pressure with a fall in the price of sterling.
GBP EUR is currently sitting at 1.1260 whilst GBP USD has broken back over 1.40.
Speech from Theresa May
Clients looking for an opportunity in the rates would be wise to pay close attention to developments in Germany both tomorrow and Saturday. UK Prime Minister Theresa May will be meeting Angela Merkel tomorrow where she is expected to build bridges for the ongoing Brexit negotiations which will move on to the thorny issue of future trade later in March. Theresa May is expected to make a speech which could result in market volatility for the pound. Foreign secretary Boris Johnson made his speech yesterday although there was little to none marker reaction on the back of it.
There are reportedly another five speeches to come from senior ministers in the British government. Any clues or indication as to the real path of Brexit is likely to see the pound move. Anything positive that suggests there will be a trade deal between Britain and the EU post Brexit should help reinforce the pound. Clients looking to buy Euros or buy dollars for example may need to wait until March / April before that clarity is offered. As such these political speeches are likely to create some short terms spikes and opportunities for buyers and sellers alike.
To discuss how these events will have a direct impact on your own requirement then please get in touch with me James at firstname.lastname@example.org