Those clients with upcoming Sterling currency positions to execute, will be keeping a close eye on tomorrow’s UK Gross Domestic Product (GDP) figures.
With little economic data of note for the UK this week the markets will be focused on tomorrow’s key release, which could be key in shaping Sterling’s value as we head into the Easter break.
Investors have likely priced in the expected result of 0.4% growth, so any figure released outside of this remit will cause an increased market reaction, with additional volatility on Sterling exchange rates a likely result.
Sterling has gained plenty of support over the past week with a strong run of UK economic data helping to boost investor confidence, with the Pound benefiting as a result. Positive Unemployment figures, strong Retail Sales numbers and an indication from the Bank of England (BoE) that they may look to raise interest rates over the coming months, all helped to drive Stirling’s value higher against the majority of the major currencies.
This positive feeling was cemented as reports regarding a Brexit transitional deal surfaced. These reports were confirmed, with the UK & EU all but agreeing the terms of the deal, which included access for the UK to the single market & customs union during the two year period.
It was for these reasons, rather than a drop in confidence in the EU, which was the catalyst for last week’s downturn in my opinion. Similarly it seems as though a sell of Sterling position has caused today’s realignment, with little Eurozone data of note to drive investor confidence in the single currency.
Looking at GBP/USD rates and the Pound has seemed to have gained a foothold above 1.40. Cable rates touched 1.42004 today and although the greenback found support around this level, the Pound can is still trading around 1.41 on the exchange.
Despite this recent upturn there are still many unanswered questions around Brexit and as such, I would be tempted to take advantage of the current spike and avoid another potential downturn.
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 winning 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.