Euro weakness, Sterling gains

Yesterday kicked the week off with sterling gains, the Pound moving slightly up from where it ended last week as the Euro hit some turbulence following news that negotiations to form a coalition government in Germany have failed, when the Free Democrat Party walked out of talks after failing to find common ground with the Green Party.  As our regular readers will know, political uncertainty does not bode well for the currency involved so in this case the Euro has taken a small hit which has provided a good buying opportunity for those with Sterling in hand and a requirement to buy Euros. Although this is bad news for the German Chancellor Angela Merkel just now it is likely that a resolution will be made soon enough so this euro weakness will be limited, so if you have an upcoming requirement now could be a good time to give us a call to talk through your options.

Continued volatility for the Pound

Brexit negotiations have so far been accompanied by a continued stream of news reports,  reporting on both negotiation breakthroughs and standstills, motivating the continuous volatility in the Pound. Most recently, the government has said it would like to agree on a transitional deal before talks turn their attentions to a future trading deal.

What’s to come this week?

Today we have a selection of low key currency news eco stats released for the UK, EuroZone and US which are unlikely to cause much movement on the rates so we can expect a relatively flat trading day before the attention turns to the UK’s Autumn Budget statement tomorrow.  Investors will be listening closely as the budget is talked through. The UK Government will want this budget to go smoothly to avoid any further bumps along the road especially with Brexit talks rounding off the year end. Will we see Sterling gains or losses tomorrow?

As always, if you have an upcoming requirement, especially this side of the new year its certainly worth dropping a call to your broker here at Currency Index to discuss the various options we provide to help you secure your currency and maximise your savings in the current currency climate.