The Pound has been trading flatly for the last few weeks, with the Pound to Euro rate having its least eventful week in over two-years last week.
Some economists believe this could be the calm before the storm as over the next week we’re likely find out a lot more about the UK-EU trade negotiations. Markets are especially awaiting news on the transitional deal which is expected to be cleared up by the time of the EU summit in Brussels on the 22nd to 23rd of this month.
There could be movement for GBP exchange rates in either direction depending on how the markets receive the news, and I think that the Northern Irish border situation could be a sticking point. The Chancellor of the Exchequer, Philip Hammond was quite bullish in his Spring Statement earlier this week and highlighted the improved forecasts for the UK economy moving forward. Whilst issues such as wage growth are beginning to pick up there are issues outside of the UK’s economic performance that could result in the weakening of Sterling, such as the border issue as well as the UK’s access to the single market and how it will navigate the customs union.
There isn’t any economic data out of the UK before the weekend so I expect GBP exchange rates to continue to be driven by politics. Next week on the other hand is expected to be very busy so do feel free to register your interest if you wish to updated in the event of a major market movement.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on email@example.com and I will endeavour to get back to you as soon as I can.