Brexit back to the forefront?

1 May, 2018

Grace Rae

With a quiet day in the way of economic data yesterday, the markets had little to move them. After last week’s sterling dip rates are now trading back in the same range seen over the past few months. This morning at 09:30 the UK release the latest Manufacturing PMI data. Last month’s data came in above market expectations, although this month markets are anticipating a further drop. Mortgage Approvals are also due at 09:30, another key release as the results set the tone for growth in the housing market. Should we see the actual figures beat expectations we could see some movement for the Pound. For those looking to buy Canadian Dollars, Canada release their latest GDP reading at lunchtime, with markets expecting to show 0.3% up from the previous -0.1%, and at 15:00 the US are set to post Manufacturing PMI then later this evening another key event for Canada as Governor Polloz speaks at 19:30.

Brexit talks are likely to start coming back into the headlines after the House of Lords voted 335 to 244 in favour of an amendment to the government’s EU withdrawal bill, which will give Parliament a vote before the Prime Minister can walk away from negotiations with the EU on her terms. Issues surrounding the Irish border are also still unresolved so with more discussion set to happen and the news of the recent vote is likely to pose more uncertainty for the Brexit path ahead and ultimately the currency.

With a new month of data ahead there are lots yet to come to move the markets. With current levels only marginally below the best we have seen all year against the Euro and the US Dollar, if you do have a requirement due in the near future and are concerned about the future direction of the Pound then give us a call today to discuss various options we provide to help you secure your funds.