Mounting uncertainty surrounding the Brexit

Pound/Euro strength managed to continue throughout the day yesterday, trading between half a cent. However, with mounting uncertainty surrounding the ‘Brexit’ it is not likely this will continue for too much longer. While Pound/Dollar rates are at the best levels for buying dollars we have seen since late February.

Pound rates could be particularly volatile as the week progresses. Tomorrow morning at 8am is the ECB non-monetary policy meeting which could cause some movements, and the market focuses on the BoE latest interest rate decision and minutes on Thursday afternoon. It is unlikely that there will be any surprise announcements, however, if there is any new commentary from the monetary policy committee in regards to the ‘Brexit’ we could see some movement for the Pound. If the BoE minutes hint at any ‘pro-stay’ remarks we could see further support for the sterling as it will suggest an backing to the ‘stay’ campaign. Which could in turn potentially influence some of the undecided decision makers. This is obviously a 50/50 chance and any uncertainly on political views on the ‘stay’ or ‘leave’ campaign could see the pound being sent back down against the single currency and the greenback.

As our markets closed yesterday, the markets across the water opened last night kicking off with Australia’s RBAs meeting minutes released in the early hours followed by Bank of Japan’s Monetary policy statement and Interest rate decision and press conference. Today is a quiet one for data release with the only big release to watch up for due at mid-day for February’s retail sales figures for the US. Tomorrow focus is on the US with consumer price index at 12:30 and at 6pm lastest FOMC Economic projections, Fed Interest rate decision, monetary policy statement and press conference.

If you have an upcoming requirement then get in touch with one of the team here at Currency Index for some friendly guidance on the contracts we offer and the latest currency news, and of course make the most of these rates as the downward trend continues, we have already seen a half a cent dip in GBP/EUR this morning, and in such a volatile market, don’t obtain that “wait and see what happens” mindset as you may be stung later down the line.