Will the pound rise or fall this week?

GBP/EUR exchange rates remain in a tight range, Sterling just about winning the week so far

The pound could be in for a good week with a series of important economic releases scheduled which might create some good short-term opportunities for clients looking to buy or sell the pound. Personally, I expect the pound to struggle as recent confidence that the UK will raise interest rates starts to ebb away.

The pound has been falling ever since the Bank of England confirmed no rate hike, perhaps for this year and not until 2019. The market was very hopeful of a stronger pound but so far this has been elusive. The market is now focussing on the economic data which is being released to try and gauge the potential for future rate hikes but I think will end up disappointed.

The pound did gain a little value following the expectation the customs arrangements agreed by Theresa May would solve issues but this has proved shortlived. The pound could gain further in the future with the main news on Wednesday concerning Inflation due to be released at 09.30 am. If you have a transaction to look at buying any currency in the future then making plans in advance is wise since this market is very unpredictable.

We offer a range of options to help you capitalise on the market, if you have a transaction to consider I am very confident we can offer not only a sharper rate but also proactive assistance with the timing of any position too. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you in the future.