So far this week we have not seen a huge amount of volatility for Pound Sterling exchange rates, if anything, against the Euro the Pound dropped ever so slightly.
News released this morning indicates that Mark Carney, Governor of the Bank of England is set to potentially take over the helm at the IMF (International Monetary Fund). This no great surprise as he is due to leave at the start of 2020. He had already agreed to remain longer than his original post was due to end to help steer the UK through the choppy Brexit waters. Hopefully whichever way that the Brexit situation ends up, something will be resolved before his departure.
Pound Sterling exchange rates: Brexit uncertainty continue to hamper the Pound
On the Brexit front we still have no new news and it is not a great surprise that the Pound is struggling as political and economic uncertainty can historically be damaging for a currency. Brexit brings both to the table. With no clear ending in sight it is hard to see any dramatic improvement in Sterling exchange rates in the near future.
Economic data for next week
Economic data is reasonably quiet for the rest of the week, on Wednesday of next week we do have a blockbuster of a day in terms of economic data, with industrial and manufacturing production, growth and trade balance figures all due in the morning, and the NIESR (National Institute of Social and Economic Research) growth estimates due out in the afternoon.
European economic data is very thin on the ground over the course of next week so it will be more likely that political news will impact the value of Euro exchange rates unless any economic surprises pop up.
On that front there is the potential for a number of economies within the Eurozone to hit the headlines as many are struggling. However, with Brexit still being the star of the media show a lot of these issues are being overlooked.
All in all it is a tricky period to predict exchange rates and it does look like rates may remain fairly range bound over the coming days. Having worked in the markets for nearly a dozen years surprises can happen so it is always key to keep an eye on the exchange rates on a regular basis.
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