End of month stability for sterling

29 September, 2016

Ashley Finill

Yesterday was a fairly quiet day on the currency market due to little data being released as the month draws to a close, the pound has received some much welcome breathing space in these past couple of days with the market being quite flat. This could be a good opportunity to snatch at the current rate with the new month starting next week. Next month will see post EU referendum inflation figures being announced and these releases may potentially harm Sterling further as it will give us more of insight on how damaging the Brexit has been for the UK. Expert market analysts had predicted back in July that by Christmas this year the Pound could be hitting 1.10 and below on the Euro due to Brexit.

With last month’s lows and major losses across the board for Sterling this may come sooner than December and could freeze any chance of a pound revival, brace yourself Sterling sellers winter is coming. With that in mind it is not all doom and gloom and you still have the opportunity to stop the rot and secure your currency today with us here at Currency Index with our forward contract option enabling you to secure today’s rate for up to 2 years in advance at no extra cost. Call your account manager today for more information.

Today may be more of a market mover in the way of data as GDP data is real eased in the UK from Q2 which is pre-referendum figures so it unlikely to have any significant impact on the markets unless the figure is worse/better than expected. Unemployment figures in Germany are to be recorded, it is expected that the figure is to remain the same figure as last month at 6.1%. Various data releases from the Eurozone at 10am with the European consumer confidence survey announcement. Later in the afternoon the US release jobless claims, GDP and Trade balance, all expecting to come in better than previous should this be the case expect Sterling to react negatively to this information.

With a busy day ahead and the market expected to make some movements stay in close contact with us here at Currency Index to make sure you don’t miss the boat on the current Sterling rate before it’s too late.