A Dull Day on the Markets
24 April, 2019
Much like the looming rainy weather we are set to receive over the coming days, the markets could similarly be set for further doom and gloom in the coming weeks.
Yesterday, rates traded fairly flat with GBP-EUR remaining within a half a cent range, providing no real swings or cause for excitement while the afternoons trading saw the Dollar strengthen somewhat following the release of positive New Homes Sales data, and pushing the GBP-USD rate below 1.30 and to a new 2 month low.
As the House of Commons begins to get back into the swing of things after this Easter’s break, traders and investors will be keeping a close eye and ears on the goings on in the House regarding Brexit, and any reports about the Conservative and Labour talks are likely to cause a stir in the rates. The hope is that the talks between the government and the Labour party will solve the Brexit impasse by finding a solution that will win the majority support of MP’s after the PM’s proposed deal has been rejected 3 times. However, it’s not likely to be an easy process as many Tory backbenchers are unhappy and are calling the Prime Minister to step down from her position.
If we do end up seeing a leadership challenge or election this could be very bad for Sterling and it’s likely the Pound will suffer further. A parliament deadlock could also take more than a few weeks to resolve, so Sterling’s value could easily get worse before it gets better, and with the Brexit timeline extended, any potential recovery is very unpredictable and there is currently no guarantee of a solution.
The day ahead is more of the same with little date out to sway things aside from Public Sector Net Borrowing this morning at 09:30 and this afternoon the Bank of Canada release their latest monetary policy report and Interest rate decision which is expected to remain unchanged at 1.75% – any changes or comments made during the statement could see rates move, so worth checking in on for those who might have a CAD requirement.
So with more uncertainty to come, those with an upcoming currency requirement may want to look at securing their currency requirement before this get worse. Speak to one of the team today about our Limit/Stop Loss orders and Forward contracts. They just might be the key to help you lock in at a preferred rate and reduce the headache of managing what is an impulsive market just now.
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