Later today in the House of Commons another vote will take place as to whether to include a condition into the EU Withdrawal Bill that means we could see the potential to hold a second referendum if there is no Brexit deal agreed to by February.
This is likely to cause a lot of volatility as and when we hear the result so make sure you keep a close eye out on exchange rates during the course of today if you’re making an exchange involving Sterling.
Tomorrow afternoon the Bank of England will hold their latest monetary policy meeting and with the recent meetings showing a 7-2 split in favour of keeping interest rates on hold could we see any change in the voting pattern?
Clearly UK GDP has not been performing well and inflation has started to fall recently so there is less justification for a rate hike in the near future. However, with UK Retail Sales coming out much better earlier this month this could potentially provide some evidence in support of a rate hike.
Therefore, although I do not expect any change to occur this month if we see any change in the tone then could this give the Pound a small boost?
The Euro is also under pressure caused by the Trade Wars that Trump is currently planning. This is causing the Dollar to strengthen and this is turn has caused Euro weakness against the Greenback.
I think the most important event this week will be the further discussions surrounding the EU Withdrawal Bill but both interest rates and the ongoing Trade Wars could continue to destabilise the markets so make sure you’re ready for any eventuality.
If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]