No Deal Brexit advice papers released

Markets were fairly muted yesterday following the interest rate decision from the Bank of England. The MPC unanimously voted 9-0 to leave rates unchanged at 0.75%, and keep bond targets and asset purchase facility as is. The European Central bank however had mentioned a subtle change will be made to end bond purchases at the year’s end, whilst keeping interest rates at the current low for the remainder of this year and beginning of next. The announcement saw the euro weaken slightly but overall exchange rates held steady in to the afternoon trading. The US posted positive jobless claims figures but negative Consumer price data which weighed a little heavy on the Dollar and provided some of the best trading levels seen this month for those looking to buy Dollars.

The UK government released some advice papers on what can be expected should we see a ‘no deal’ Brexit. The papers touched upon various topics and warned that UK driving licences may not be valid in the EU and an international driving permit may be required. Free mobile-roaming may also be taken off the cards for UK citizens travelling in the EU and to be sure you have at least 6 months left on your passport.

With the government still aiming to have a Brexit deal in place by mid November at the latest, time is running thin to get a satisfactory deal in place for both parties, so still lots to come in the weeks ahead which could still negatively impact the exchange rates. Those of our readers who are risk adverse and needing to secure some currency, may want to consider getting in touch with us and talk to a member of the team for some friendly guidance on how we can help you.

Elsewhere in the world

GBP-TRY pairing fell sharply following Turkey’s central bank raising its rate by 6.25%, taking the base lending rate to 24.0%,. The move was much bigger than the 3.25% increase anticipated by the market and the rate dropped by almost 50 points but soon regained back some stability.

The higher levels we saw in the GBP-AUD pairing earlier in the week have come down slightly as the Australian dollar found some strength with better than expected jobs data.

If you need to send money to South Africa, the Rand is also under pressure due to poor domestic growth so markets will be watching closely to see which way the pairing move.

The day ahead

This morning the Eurozone post their Trade Balance figures at 10:00 which is swiftly followed by a speech at 11:00 by the BOE’s governor Mark Carney who recently agreed to extend his term as governor until 2020 to assist with leading the economy through Brexit. The afternoon is largely dominated by US data, as Retail sales and import/export figures are released just after lunch at 13:30, Fed member Evan’s has speaks at 14:00 and Industrial Production figures at 14:15 .