Brexit uncertainty still weighs on the pound!

The full scale of uncertainty remaining over Brexit was reinforced today with David Davis, the UK Brexit secretary reportedly ready to resign if Theresa May failed to commit to any end date on Brexit when the UK would have effectively left the EU. The idea being to end the potential perpetuity of the loose, yet legal ties the UK would still maybe have with the EU.

For clients interested in the pound and the Euro, the outlook for both currencies remains mixed with plenty of both positive and negative elements to consider. The two currencies have been stuck in a deadlock since November 2017, we have only seen just over 4 cents movements since this date which highlights not only the lack of movement on the pair, but also the potential for big swings up ahead.

Some key events to be conscious of up ahead are the ECB (European Central Bank) interest rate decision next Thursday before the Bank of England decision the following Thursday and the EU Summit the following week. This makes the next 3 Thursday’s very interesting indeed for the GBP to Euro rate.

I think the pound to Euro will remain in this 4 cent band, essentially between 1.12-1.16, clients looking to buy or sell Euros with pounds should be checking the market very carefully. There is potential for a move outside of these levels but more than likely we will fluctuate inside them. For any clients looking at a position we can offer a free, no obligation service to offer strategy and monitor the market for developments which will help you.

For more information at no cost or obligation please speak to me Jonathan on jmw@currencies.co.uk

Thank you for reading and I look forward to hearing from you!