Brexit negotiations still is the balance

Yesterday’s trading seemed to remain within a tight range with no major movements in the rates to report. The morning’s trading was quiet as markets were awaiting the European Central Bank’s latest interest rate decision at lunchtime. Mario Draghi was relitively positive on the banks outlook for the Eurozone’s growth and has decided to keep the the interest rate and current policy unchanged.

In the afternoon, our new Brexit secretary Dominic Raab and EU Chief Negotiator Michel Barnier met in Brussels to continue Brexit talks and they have said the are both looking to conclude a Brexit deal by October. To quote Barnier “we are not at the end of the road yet, there are major issues to be discussed and questions to be answered.” leaving a lot open to speculation on the issues of borders and customs union which are yet to be agreed upon. With the next meeting due in mid-August, we could expect these current exchange rate levels to stick around, with a chance things could get worse if further Brexit proposals don’t go to plan in the coming weeks/months. We can expect the pound to continue to move based on Brexit news so if you have a requirement to buy any other currencies from Sterling it could be wise to get in touch with us here at Currency Index to see how things pan out.

Today we have another quiet morning with no major market moving events due then after lunch the US post GDP annualised figure which is expected to increase from 2.0% to 4.1% and core personal consumption expenditures which is expected to fall from 2.3% to 2.2% these results are dues at 12:30 so anyone with a dollar requirement may want to get in touch with us early doors.

As ever if you have a requirement in the short term and if you are concerned about your costs potentially increasing further, keep cool and give us a call today and chat to one of the team to talk through the options we can provide to help you minimise your risk.