Sterling has made gains across the board this week, following confirmation that the UK & EU have all but agreed on the terms for a Brexit transitional deal.
This has helped to alleviate many of the concerns that the UK was going to be left in a state of economic limbo following our separation and as such investor confidence has started to return to the Pound.
This positive trend was cemented this morning following the latest UK Unemployment figures, which came out better than expected at 4.3%, with average earnings up at 2.8%.
This helped drive Sterling’s value higher and now sits at some of the best levels we’ve seen over recent months.
The GBP/USD exchange rate moved to 1.4075, and the Pound finally seems to be gaining some momentum, following months of stagnation, with Brexit talks finally progressing. A word of caution to those clients holding Sterling is that it seems as though the UK have had to give up a lot of ground to the EU in order to move talks forward, details of which will become clearer over the coming weeks.
If the UK is under heavy restrictions during the transitional period, then this could restrict economic growth and opportunities for UK business’s and this in turn would likely heap pressure back on the Pound.
I expect plenty more volatility for the remainder of the week, with the much publicised EU summit commencing tomorrow. We also have the latest BoE interest rate decision and monetary policy statement, followed by Eurozone Manufacturing data. With the next phase of Brexit talks underway on Friday, during the second day of the summit, be prepared for further fluctuations in Sterling’s value.
As such, it may be worth taking advantage of the current improvement for Sterling, with no guarantees that the current trend will continue as we move through the 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.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.