The pound received a boost today as it became apparent the European Parliament is debating a special arrangement for the UK to gain access to the Single Market. The UK would benefit hugely from remaining in the Single Market, this is the free trade and harmonised area of regulation within which EU members can trade.
The reaction by the market to this news just highlights the sensitivity of the pound to Brexit news, it is also highlights the lack of real concrete news in that the market would react and seize on such news with the reaction it did. Sterling has risen around 0.7% against both the Euro and US dollar presenting fresh opportunities on both currency pairings.
The outlook for the next few days could see the pound rise even further with the latest Unemployment data released tomorrow at 09.30 am and then on Thursday the latest GDP (Gross Domestic Product) data. The focus will be on wage growth for the UK, tracking any increases in UK wages versus the rises we have had in Inflation. A key concern for consumers and the Bank of England is whether or not the UK consumer’s spending power and living standards are being eroded too much by the higher Inflation the weaker pound has brought us.
Sterling seems to be enjoying some buoyancy for now although there are still many unanswered questions over the Brexit to settle, overall impressions on the rates are that sterling will come under pressure again once the talks begin and negative headlines surface over any progress.
With plenty left to understand from Brexit, the pound will clearly not just keep rising from here although the next 48 hours could offer some interesting opportunities. If you have a transfer to make buying or selling the pound then why not get in touch with us to see if we can offer any practical assistance with the timing and a better exchange rate?
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