Brexit taking a step in the right direction
20 March, 2018
Yesterday the UK and the EU agreed on what both parties say is a “large part” of the agreement that will ultimately lead to the official withdrawal of the UK from the European Union. The transitional period will last from “Brexit day” on the 29th of March 2019 to the 31st of December 2020. The news broke in the morning and seemingly sent investors into a frenzy as the pound soared against the Euro gaining over a cent and a half.
This could finally be the first positive step in the right direction in regards to Brexit which has seen the messy and somewhat confusing saga dictate the movements of the currency market for the past 2 years. Although this breakthrough has been Sterling positive investors are still likely to act cautiously in the next few months and quite possibly all the way until the official departure on the 31st of December 2020 as anything could happen from now until then and with these talks only signalling when the divorce will take place we are still a very long time away from everything being finalised as much more is yet to be agreed on.
For all Euro buyers it is worth noting we are now at 2 months highs against the Euro and whilst there has been a sharp increase it may be worth considering striking whilst the iron is hot. Over the past couple of years we have seen short spikes for GBPEUR but have never really given Sterling enough support to push on and make steady gains and historically the rates revert back in Euros favour. Should you have an imminent requirement for Euros within the coming months it may be prudent to get something in place as these gains present a great buying opportunity and may not be around for long.
Get in contact today with your account manager today to speak about the various options we have available to you.
Today’s data releases
There is a raft of data to be released today which will almost certainly have an effect on the currency markets.
Starting in the UK at 9.30am retail figures are set to be released which is excepted to be a contraction from the figure of last month, at the same Producer price index is to be realised which is also predicted to be contraction from last month and finally in the from the UK Consumer price is expected to post a 2.8% figure, down from last months at 3%. Should these inflation figures be correct it is unlikely that the BOE will look to raise interest rates at this month’s meeting on Thursday of this week.
These data releases could spell bad news for the pound early doors and eradicate sterlings rally and reverse the gains seen yesterday. Finally over to the Eurozone as the Germans will release the ZEW survey at 10 am.
- 2020 (59)
- 2019 (190)
- 2018 (229)
- 2017 (253)
- 2016 (254)
- 2015 (253)
- 2014 (252)
- 2013 (287)
- 2012 (270)
- 2011 (576)
- Brexit deal to be done, or going, going, gone? 25 November, 2020
- Sterling starts the week down from the highs of last week 16 November, 2020
- Votes are in – albeit still being counted, will Donald trump Joe? 4 November, 2020
- No categories