The pound has rallied against most of the major currencies today with a good move higher against the Euro in particular. Rates for GBP EUR have now broken above 1.13 having seen a high of 1.1345 earlier today.
Next week is likely to be hugely important for sterling exchange rates ahead of the EU summit 22nd & 23rd March. The transitional agreement on Brexit is expected to be concluded ahead of the summit for it to be put forward to the EU commission for final approval. The transitional arrangement however is generally regarded as a straight forward element and the markets should really have priced in part 2 of the Brexit negotiations as being complete.
Any changes or new uncertainty are likely to see the pound react so it could be an interesting week for instability. In my view the real volatility should come at the end of this month when the talks on future trade commence which will be much more politically explosive. Clients looking to buy Euros could see sterling fall in the short term although in the longer term I am of the opinion the pound could rally a lot higher, although we are not quite at that stage just yet. Any progress with regards a future trade deal for Britain and the EU is likely to act as a major post for the pound.
Clients looking to buy or sell Australian dollars are seeing heightened volatility for the GBP AUD pair with rates having broken through 1.79 today. The Aussie has come under immediate pressure after the new economic adviser for Donald Trump signalled that further tariffs on imports are to be expected. This is negative for the Australian dollar as a perceive trade war could slow global economic growth and it is normally the commodity currencies which includes the Australian dollar which are the first to fall. The next announcement from the White House could see rates for GBP AUD push higher with a move over 1.80 starting to look very likely.
For more information about the pound and how to try and make the most of any opportunities for buying or selling sterling then please get in touch with me at email@example.com