Sterling came under pressure yesterday, following some poor UK employment.
The UK’s official Unemployment rate rose to 4.4%, which was above the markets expected result. The Pound immediately came under pressure, having gained support earlier in the week, as investors proved their funds away from Sterling.
GBP/EUR rates fell back towards 1.13, whilst GBP/USD is now trading below 1.40 again.
It’s been a volatile week for the Pound, which look set to make inroads against both currencies earlier in the week, following a leaked Brexit report from the EU parliament. Whilst any leaked report should be taken with a pinch of salt, it seemed to indicate that Brussels was leaning towards giving the UK “privileged” access to the single market, thus softening our upcoming exit.
Whilst the report has not been substantiated, it seemed to provide enough evidence to boost market confidence in the UK economy and as a catalyst for Sterling’s value to increase.
Alas events from yesterday seem to have dampened those expectations, although the Pound curbed any aggressive losses following a data that the UK economy had seen the strongest two quarters of productivity since the 2008 recession.
These conflicting reports are typical of recent times, with the markets seem to be increasingly driven off of rumours rather than facts and as such, they are proving increasingly difficult to dissect.
With Brexit developments likely to drive investor sentiment over the coming months, I would be wary about gambling too much on a market which has become unpredictable at almost every turn.
Those clients holding Sterling should be keeping a close eye on this morning’s UK Gross Domestic Product (GDP) figures, which could prove key to determining which direction Sterling takes as we head towards the end of the trading week.
If you have an upcoming Sterling currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.