Parliament Suspended

This week Sterling has enjoyed a rally on the Euro gaining over a cent on the Euro since Monday opened for trading. As we have seen previously with any gains for the Pound these gains can be short lived. Members of parliament have now managed to legislate against a no-deal Brexit whilst also denying the Prime minister Boris Johnson an early snap election which if he had managed to get an election could have seen a no deal Brexit back on the cards. With parliament now suspended for the next 5 weeks it is likely in this time the market to not make any significant movements. Boris Johnson is due to attend the EU Summit on the 17th of October once parliament resumes and with Brexit being only days away expect to see extremely high volatility.

On the data front the UK posted better than expected wages figures to 4.0% from the predicted 3.7%. Just to put this in perspective on how the market is being driven, pre-Brexit days these sort of figures would of rallied the pound somewhat significantly as this would have shown strength in the UK economy and supporting a claim for an interest rate hike however, the currency market is currently sentiment-driven with any economic figures having no or little effect. If you have a requirement for currency within the next 5 weeks it may be prudent to secure your currency soon rather than later with Brexit now looming even closer and a potential snap election on the cards later this year. Sterling has gained nearly 5% on the Euro in the last 4 weeks. In monetary terms a property costing €100k is roughly over £3k cheaper, not something to turn your nose up at. With this in mind it may be prudent to get your currency secured before Boris heads of to Brussels in October as we could very well see a reversal and the lows of August.