Theresa May to influence sterling exchange rates

Tomorrow UK Prime Minster Theresa May will be making her case that the UK are leaving the customs union, even though the House of Lords last week voted in favour of remaining. The PM is stuck between a rock and a hard place as she continues with her stance that she the UK public have spoken and therefore the UK will leave the EU and therefore the customs union, but at the same time she wants the Irish border to remain as a soft...

Poor data releases could hold back BoE rate hike

Inflation and Retail Sales a concern for the BoE Following a host of positive data releases we saw significant gains for the pound against the majority of major currencies. GBP/EUR breached 1.15, GBP/AUD nearly broke 1.85 and GBP/USD got close to 1.45. There was a large rise in average wage growth and unemployment hit a 43yr low. A transitional deal was all but agreed for Brexit, granting the UK access to the single market for two years until a full exit from the EU. This all...
GBP to CAD forecast - CAD supported on stronger GDP

GBP Forecast – Where Next for Sterling Exchange Rates?

Those clients with upcoming Sterling currency positions to execute, will be keeping a close eye on tomorrow’s UK Gross Domestic Product (GDP) figures. With little economic data of note for the UK this week the markets will be focused on tomorrow’s key release, which could be key in shaping Sterling’s value as we head into the Easter break. Investors have likely priced in the expected result of 0.4% growth, so any figure released outside of this remit will cause an increased market reaction, with additional volatility...
Pound to Euro Starts the Week off Steady

Sterling Exchange Rates Fall from Recent Peak

The pound has fallen lower today after that excellent run last week which saw sterling surge across the board after the transitional deal in the Brexit negotiations was agreed. Rates for GBP EUR have fallen to a low of 1.1365 today whilst GBP USD touched 1.4066 before climbing higher in afternoon trade. Whilst a transitional deal has been officially agreed between Britain and the EU, there are still some very big issues which need resolving. Whilst I am of the opinion these issues will be...
Pound to Dollar Rate Slides to 1.38

GBP Forecast – UK Unemployment Rate & Brexit Deal Driving Sterling’s Value

Sterling has made gains across the board this week, following confirmation that the UK & EU have all but agreed on the terms for a Brexit transitional deal. This has helped to alleviate many of the concerns that the UK was going to be left in a state of economic limbo following our separation and as such investor confidence has started to return to the Pound. This positive trend was cemented this morning following the latest UK Unemployment figures, which came out better than expected at...
GBP USD Slide Lower Gathers Momentum

Sterling Supported on Transitional Deal

The pound has been given a major boost following the agreement on the transitional deal which was agreed yesterday by Brexit secretary David Davis and his EU counterpart Michel Barnier. GBP EUR rates broke through 1.14 before retreating slightly whilst GBP USD remains above 1.40 for the pair. Britain will effectively be able to access the single market but without being able to be involved in the rule making. The gains are already proving somewhat limited however and there has been a political backlash from...
pound to euro: Michel Barnier’s positive comments lead to further Sterling strength

When shall I move?

Sterling Seller Strategy - GBP/EUR, GBP/USD and GBP/AUD GBP/EUR – Sterling is suffering due to the uncertainty surrounding Brexit. One of the key points of negotiation is whether or not the UK financial sector will have access to the single market following Brexit. This is proving to be particularly difficult. Theresa May’s proposal was for the UK to continue to have access to the single market and to abide by the highest standards of international laws. This was declined by Brussels. The French wish to attract...
GBP USD Slips Ahead of BoE Rate Decision

Sterling Euro and the US Dollar – Data Today

The Spring Statement was released yesterday and this was received relatively well and this gave Sterling exchange rates a small boost vs both the Euro and the US Dollar. One of the positive points was that he increased the growth forecast to 1.4%, which is slightly higher than what was predicted a few months ago. Hammond also commented that national debt would fall during this year and next. In the next couple of weeks the EU summit is due to take centre stage and could be...

GBP Forecast – Will the Pound Continue to Gain in Value This Week?

Much of today’s focus centered around UK Chancellor Philip Hammond’s Spring Statement, which was predictably upbeat and bullish in its delivery. The Chancellor signaled stronger growth, despite the on-going market concerns around Brexit, with UK Gross Domestic Product (GDP) forecasts upgraded from 1.4% to 1.5%. Whilst this was only a modest improvement, the government also expect borrowing to decrease throughout the year and inflation to fall back to their 2% target by 2019. The Pound reacted positively throughout the day, making gains against most of the...
GBP USD Slide Lower Gathers Momentum

Sterling Exchange Rates Rally Close to 1.13 for GBP EUR

The pound continues to trade within a tight range as the markets still await new developments in the Brexit negotiations. The pound is currently trading at 1.1270 against the Euro and 1.39 against the US dollar having seen reasonable gains across the board today. Those clients looking to sell Euros for pounds have been presented with another good opportunity to convert. The focus is now largely on Brexit with the terms of the transitional arrangement expected to go through in the next couple of...