The Spring Statement was released yesterday and this was received relatively well and this gave Sterling exchange rates a small boost vs both the Euro and the US Dollar.
One of the positive points was that he increased the growth forecast to 1.4%, which is slightly higher than what was predicted a few months ago. Hammond also commented that national debt would fall during this year and next.
In the next couple of weeks the EU summit is due to take centre stage and could be the catalyst for a great deal of movement for Pound exchange rates as at the heart of the summit will be what will happen with the UK’s relationship with the European Union in the future.
The transitional period which is due between March 2019-December 2020 has been a sticking point for both sides recently and this will be a hot topic during the next fortnight. This is likely in my opinion to have a big impact on Sterling exchange rates so make sure you’re prepared if you have a currency transfer to make this month.
Turning the focus to what is happening on the continent European Central Bank President Mario Draghi is speaking this morning and he has already suggested that underlying inflation remains ‘subdued’ and this could mean that the current QE programme may not be coming to an end as early as some may have expected.
There are a number of important data releases coming today starting with Industrial Production data as we ll as Employment figures due out at 10am. Later on this afternoon US Retail Sales are due so we could see GBPUSD rates possibly track towards 1.40 if the data is lower than expected.
If you are in the process of exchanging currency at the moment and would like further information or a free quote then contact me directly and I look forward to hearing from you.
Having worked for one of the UK’s leading currency brokers for 15 years I am confident of being able to offer you better exchange rates as well as helping you with the timing of your transfer.
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