Calm before the storm UK takes centre stage

Yesterday was a flat day on the market amidst little economic data. GBP>USD remained relatively flat, albeit at the best levels we have seen in nearly 2 years. Those of you who are buying Euros may have seen that GBP>EUR rates have remained trading within a very tight rage for some time now. Since September rates have moved with a 3-cent range, which after the 20th December then tightened to around ¾ of a cent. We have not seen any real movement outside of this range, as much of the markets went quiet over the festive period and as data releases slowed….this is likely the calm before the storm.

Today we see data from the UK kick back in, and as such we will likely begin to see movement now in what has been a stagnant rate for months.

This morning we have UK retail sales, House price and Producer price index data, and inflation figures – a number of key releases which could see rates move quickly. There is little data from elsewhere, and with the UK taking centre stage all eyes will be focussed on the Pound and which way it might break out of this trading range, up or down. With the Euro currently very strong (demonstrated by it having taken the USD to a 3+ year low) any poor release form the UK could send the Pound tumbling, and let us not forget that Brexit negotiations are still slowly bubbling away in the background. Those of you with upcoming requirements may like to consider this and take advantage before we perhaps see rates at this current level diminish. The same applies for GBP>USD – rates are the best they have been in a couple of years, and poor data or Brexit uncertainty could erode these levels quickly.

Speak to your Currency Index broker today for some friendly and professional guidance on how to get the most out of your transfer. Currency Index can offer several ways in which you can order your currency to help protect your budget in such volatile and uncertain times.