The Pound has had a fairly flat day to start off the trading week, seeing minimal movement against most major currencies.
Generally at the end of a calendar month you do tend to find that economic data does quieten down, however that is not to say that we are set for the rest of the week to remain flat.
The major issue as many regular readers will be aware is the on going Brexit talks. As it stands the talks are not exactly going smoothly and there are a number of obstacles that we still need to overcome just to get things started, the longer we struggle to get things moving in a positive direction the more Sterling will struggle to make gains.
Tomorrow morning does bring a few interesting and important releases for the U.K and indeed Sterling exchange rates, and we may be in for a much more volatile day of trading because of this.
At 8am we have the release of banking stress tests along with the financial stability report for the U.K. The bank stress tests will focus on a number of key areas that involve risk, such as credit risk, market risk and liquidity risk and will essentially give an overall summary of the financial health of each bank should there be a financial crisis situation.
Terms of banks have been tightened up in recent years, so you would hope that the results will not be too bad, however be poised that if there are negative results tomorrow morning the Pound may struggle.
The Financial Stability report, also released at 8am is published twice a year by the Bank of England and this equally will give an assessment of the outlook for stability and resilience of the financial sector at the time or preparing the report. A negative outlook may also bring Sterling weakness and a glowing report Sterling strength.
Later in the morning Bank of England Governor Mark Carney speaks at 08:30am and he will give an overview of the results and any plans to combat problems that have arisen from the results.
The rest of the day is fairly quiet for Sterling exchange rates so this may set the scene for the rest of the trading day, so if you have a large currency exchange to carry out then you may need to get up early just in case there is an opportunity that arises.
If you are in the position that you need to carry out a currency exchange in the coming days, weeks or months and you would like assistance then you are more than welcome to contact us here directly and we can help you. We do not only offer up to date market information but all writers on this site also work for one of the largest currency brokerages in the U.K, having been in operation for almost 18 years now.
We are confident that we cannot only get you a better rate than your bank or current choice of broker, but we can also offer you a better, more personalised level of service too.
If this is of interest then feel free to contact me (Daniel Wright) by emailing [email protected] or by calling our trading floor on 01494 725353 and asking for me (Daniel Wright) personally and I will be happy to speak with you.