Political uncertainty has been behind the Pound’s losses for much of the past two years. Even when it looks like Sterling will stage a fightback it’s usually politics that drive the Pound lower.
At the moment the issues are surrounding the Brexit only from an internal perspective. Sterling exchange rates have come under pressure as rumors of internal issues within the Conservative party and the type of Brexit different factions want is causing disagreements. Jacob Rees-Mogg is the figurehead of a 60-strong pro-Brexit movement within the Conservative party, and there are talks of another snap election to try and pave the way for the type of Brexit they want.
Moving forward I expect Brexit to continue to influence the GBP to EUR exchange rates, although his week economic data is also likely to influence rates as both Inflation levels along with Retail Sales figures will be released over the next couple of days.
The chances are the Pound to Euro rate would be higher than its current position had the Bank of England decided to hike interest rates almost 2-weeks ago as some were expecting them to.
I think that markets will watch this week’s data closely as it could determine monetary policy later in the year. The markets are expecting a rate hike later in the year. If you would like to notified in the event of spike in the rate, do feel free to register your interest with me.
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 protected] and I will endeavour to get back to you as soon as I can.