Another flat day in the currency markets

Yesterday saw another muted day on the currency markets, trading remaining within a tight half a cent range, following the trends of the past week. With no major data to trade on, all wait seems to be for the next big Brexit announcement.

Talks continued yesterday between the Tory and Labour parties, but still, no clear breakthrough, with Jeremy Corbyn blaming the Tory party for not budging their ground or being open to compromise. All signs signalling that these talks may not last much longer. The days biggest political news perhaps being that senior Tory figures are looking at ways to possibly mount another leadership challenge on Theresa May. Under current rules, a leadership challenge cannot take place before December 2019, a year on from the previous one. However, talks that begun on Tuesday and continued yesterday pose a stern challenge on the PM. Should these talks come to some sort of conclusion against the PM and a leadership challenge is proceeded with, we could see the GBPEUR rate take a hit and drop by 2-3% fairly quickly. The main issue surrounding the PM’s date of departure, with Tory MPs wanting clarity of when she is planning to quit.

In the days only data of note, BOC interest rate decision, as expected remained the same. However, as parliament picks up speed we are sure to see changes in rates so stay in touch with your account manager to stay up to date.