Flat markets with risks for further downfalls
5 July, 2019
There has been no new news regarding the Tory leadership race to Number 10 and with no further moves towards the Brexit deadline the likelihood of the Pound gaining back any strength against its majors in the short term is slim.
In recent weeks there have been no major events to cause investors to move money so our regular readers or those with a cautious eye on the rates will have noticed rates have been trading sideways or flat. Since early May Sterling has continuously fallen and until we have a clear path towards what kind of Brexit we end up with, the current downward trend could be set to continue rather than reverse. Since Mark Carneys comments on Wednesday evening that further central bank interference is increasing the markets dipped on Thursday nearing multi week lows, paired with increasing odds of a ‘no deal’ Brexit as both Tory candidates have expressed that they would need the EU to agree to some sort of improved deal, The pound is sitting in dangerous waters.
Some could argue we might see some relief once we have a new Prime Minister, and they are not wrong. However, its easy to get carried away and assume rates will pick up back to the levels seen in May but the more likely outcome is the relief seen will be minimal. If you have a requirement coming up in the next few weeks and months don’t get caught out by waiting and speak to us here at Currency Index early on.
Today the market data focus will be on the US with employment data, nonfarm payrolls, private payrolls, and unemployment rate. Followed by Canada’s net change employment and unemployment all after lunch at 13:30
If you need to secure some currency but don’t necessarily have the full amount of funds available then our Forward contract might be just the answer. You can secure your full requirement with just an 10% deposit and settle the balance at a later date set by you. Give us a call today for more information or better yet get yourself registered with a trading facility, speak to your own personal consultant and ask about the other options we provide to help you with your upcoming transfers. We can help offer some guidance on the market movements to help you mitigate your risk and exposure to the downward trend.
- Sterling had a couple of brief rallies towards the end of last week 22 July, 2019
- Sterling hits lows of 2019 19 July, 2019
- ‘Backstop is dead’ and Sterling is lowest performing currency 17 July, 2019
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