UK markets to focus on Retail Sales

With an absence of data for the UK yesterday, the pound found itself finishing the day just where it started. After suffering a 5% drop at the beginning of the month, the Pound has been slowly recovering against the Euro but is struggling to make any significant moves due to key levels of resistance. With rates unable to push higher the Pound dropped around 0.5% against the Euro before recovering its losses later in the day, and rates remain close to a two-week high. Cable, however, has traded at a one-month high due to the weaker dollar over the last week causing a 4 cent shift in exchange rates, providing an excellent opportunity for Dollar buyers.

The Pound now faces three big announcements over the next week that will add significant risk to the exchange rates. This morning is the last major data release for the month with UK Retail Sales announced at 9:30 am, and figures have been weak in recent months. Scottish MPs and due to vote on the call for a second referendum today with Nicola Sturgeon pressing ahead with this request once Article 50 has been invoked next Wednesday on 29th March. Nicola Sturgeon will, however, have a battle on her hands with Theresa May who ultimately has to approve the 2nd referendum, and has already stated that ‘now is not the right time’.

This afternoon the focus will be back on the US Dollar with a speech from Janet Yellen at midday, followed by New Home Sales figures at 2 pm. If you are trying to maximise your exchange rate in this uncertain period, contact your broker today to discuss the options available to you.