The pound to US dollar (GBP/USD) exchange rate spiked last night, after news that MPs voted against a ‘no-deal Brexit’ yesterday. At the highest point this morning we have seen GBP/USD trade as high as 1.3330 whereas at the lowest point it’s traded almost a cent lower.
It’s been a volatile week for the pound against all major currency pairs, with yesterday being particularly volatile. The day’s range was three times the normal range over the past 3-months, which goes to show the importance of timing transfers. If if you would like to be updated in the event of major market movements do feel free to register your interest with us.
There could be more sharp price movements later today, as now that UK Prime Minister May’s deal has been voted against for the second time, and MP’s have voted against a ‘no-deal’ Brexit, there will now be a vote on whether or not to request an extension to Article 50. There could also be another meaningful vote on May’s deal next week before the EU Summit which will take place on the 21st-22nd of this month. It’s looking like there could be an extension up until the 30th of June, although for this to take place all 27 EU members must also agree.
The vote is expected to take place around 5:00pm rather than 7:00pm which was the original expectation, so feel free to get in touch if you wish to be updated.
In the US, January new home sales data will be released today, with the expectation for a modest rise. There has been a slowdown in US housing sales and construction data recently, and the hike to US interest rates has been blamed for this slowdown, so I expect this data to be watched closely. These figures will be released at 2:00pm which is an hour and half after US jobless data will have been released.
So far this week, sterling has experienced significant movement as a result of political developments coming out of the House of Commons, with another vote due this evening this is likely to continue. If you’d like to discuss these upcoming events and how your cable exchange could be impacted feel free to use the form below to get in touch, I’d be happy to contact you personally and discuss your requirements.