Mixed week for the Pound

23 October, 2017

Nakhil Mahra

Last weeks Trading

Last week saw all currencies seesaw to gain the upper hand on each other at various points. With mixed data out for GBP with below average retail figures on Thursday. This, after posting an inflation figure of 3% and saw average earnings increase marginally to 2.2%. rounding of a very mixed week for the Pound, which saw Euro gain 3/4 cent during the day’s trading on Thursday. This provided an opportunity for Euro sellers to gain more GBP than they would have possibly anticipated.

However, with some positive news on Friday afternoon with news filtering out that Brexit talks were finally progressing to trade talks. Currently not including the UK but signs of progress at last and signs that Mrs May, may get a good deal after all. With the deadlock on EU citizens rights finally broken, or at the very least showing promise that an agreement is not far away.

The week ahead

The week ahead will be a quiet one, with the majority of data already out for the month.  The two key pieces of data to keep an eye for however is the Inflation hearing on Wednesday, with Carney speaking, will he further hint at an interest rate hike? Should this not happen however there is potential for the markets to drop.  And secondly, Thursday with the ECB press conference where Draghi will hope to further strengthen the Euro. This could lead us to the levels seen in August and early September, where rates were at the lowest point since the referendum. How will a rate drop of 2% affect your property purchase? Will it still be affordable? Why not take advantage of our forward contracts and take the risk element out and be in control of your money.

Mixed week for the Pound
Mixed week for the Pound

Wednesday UK Inflation Hearing


12.45 ECB minimum bid rate.

1.30 ECB Press conference

1.30 USD unemployment claims


1.30 USD advance GDP q/q