Focus on UK Election

5 June, 2017

Matthew Boyle

Last week was a bad week for the pound as we saw uncertainty ahead of this week’s elections push it down across the board. In what is a highly sentiment driven market currently concerns that we are looking at a potential hung parliament, and polls suggesting it is now incredibly close have seen the Pound weaken as this is seen bad for Brexit negotiations. As a result, through the week the pound lost around a cent against the Euro and half a cent against the Dollar. EUR/USD remained relatively stable throughout the week, although the Euro did make small gains as it is currently very strong, whilst the USD is experiencing a period of weakness.

This week kicks off with the Big 3 – GBP,USD and EUR going head to head as they all release Markit services PMI data today, however, the main focus will no doubt be on the UK election on Thursday. All eyes will be watching closely for any further signs as to who may be the victor, with sentiment driving the market and as such rates. Will we see any last-minute flurries, or will it remain stagnant until after the result? Hard to say. What is certain is that after Thursday we can expect the rate to move, and this could be significant. And whilst we do not know for sure which way the election will go, we can offer you several ways in which you can help protect your currency purchase and prevent your costs from shooting up.

Forward orders can lock your rate in now, and stop/limits are a good way to create a safety net, so should it go the wrong way your rate can be grabbed whilst it is available. So rather than wait and risk the outcome, perhaps you are listening to the bookies (let’s not forget Brexit and the US elections!) speak to your Currency Index account manager today for some friendly guidance on how to help take out some if the increased risk we are currently seeing. Whether you are a supporter of the reds, blues, yellows, greens or otherwise Currency Index can help you save money on your overseas transfer.

09.00 EUR Markit services PMI
09.30 GBP Markit services PMI
13.30 USD Non-farm productivity
14.45 USD Markit services PMI, ISM non-manufacturing & factory orders

05.30 AUD RBA rate statement
09.30 EUR Sentix investor confidence & retail sales
15.00 CAD Ivey purchasing managers index

02.30 AUD GDP data
08.30 GBP Halifax house price data
10.00 EUR GDP data

24HR GBP Parliamentary election
02.30 AUD Imports, exports and trade balance
06.45 CHF Unemployment rate
12.45 EUR Monetary policy statement & press conference
13.30 USD Jobless claims

07.00 EUR German imports, exports and trade balance
09.30 GBP Consumer inflation expectations
13.30 CAD Unemployment data