Poor week for the Pound more trouble ahead

13 March, 2017

Matthew Boyle

Last week was a bad week for the pound as it lost ground across the board, most notably against the Euro and Dollar. The primary focus of the week, particularly for the Pound was Wednesdays UK budget announcement, however as is usually the case this did little to move rates. It seems at present that market sentiment is having a huge effect on rates, with the primary issue being Brexit and the delay/uncertainty surrounding article 50.

As Teresa May and the House of Lords seem to have entered somewhat of a tennis match currently, and the Pound is taking the strain. Gradual losses throughout the week meant it closed with rates against the Euro now close to the lowest they have been since last November, and against the USD also nearing 31-year lows.

This week is an incredibly busy week regarding data, with releases from the three most important central banks, and also interest rate decisions from Switzerland, Australia and Japan. Given how hard this week is likely to be those of you with future requirements would be well advised to stay in close contact. With article 50 still looming over the Pound, uncertainty is ongoing, and as such we could see further losses. Reports over the weekend are suggesting that Teresa May might invoke Article 50 this week, so what effect will that have on the market?

News also surfaced of increased tensions between Turkey and Holland, as two diplomats were turned away – an escalation in that could drive weakness into the Euro. As we are fast approaching the Dutch and perhaps more significantly the French elections, where we have already seen Le-Pen is popular – this is considered to be weak for Euro and so could see rates push up. With so much going on it will certainly be a volatile few weeks ahead of where timing will be critical.

So give Currency Index a call today for some friendly help and guidance on how we can help you get the most out of your currency transfer and avoid being caught out in a costly movement in the rate.

13.30 EUR ECB President Draghi Speech
15.00 USD Labour market conditions Index

07.00 EUR German Inflation data
10.00 EUR Industrial production & ZEW sentiment survey

08.00 EUR Italian CPI data
09.30 GBP Claimant count change & unemployment data
12.30 USD Retail Sales & Inflation data
18.00 USD FOMC economic projections & monetary policy statement
18.30 USD Fed interest rate decision & press conference

00.30 AUD Unemployment rate & employment data
02.00 JPY BoJ Interest rate decision & monetary policy statement
08.30 CHF Interest rate decision
10.00 EUR Inflation data
12.00 GBP BoE asset purchase facility, interest rate decision, monetary policy statement & minutes

10.00 EUR Trade balance data
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