Pound Brexit Breakthrough

On Friday news broke that Theresa May and Jean-Claude Juncker have agreed a deal, closing the first phase of Brexit negotiations. They released a joint report which highlights all the current agreements made regarding protecting citizens rights, the Irish border and the financial settlement. Being the first big breakthrough for the Pound Brexit negotiations, sterling benefited and rose to a new 6 month high against the Euro providing a great opportunity for those with a euro requirement.

After a big market moving event like the one we saw last week, the market tends to have a period where the rates settle back down. With phase two of brexit negotiations set to get talks onto the subject of trade there is every chance that the rates could dip back if talks don’t go smoothly or indeed if we see any setbacks like we did with the divorce bill.

The week ahead

The week ahead includes lots of eco stats for the UK, Eurozone and the US, so we could see movement for anyone who needs to send money abroad. On Thursday the Bank of England hold their rate meeting, although it is widely expected that the BoE will keep interest rates unchanged at 0.5%. Average Earnings and Retail Sales have been forecasted to rise from the previous months figures and better than expected retails sales could offer the Pound a further boost. However anything below forecast could cause some damage and for the Pound Brexit agreement should be formally agreed at Thursday’s EU summit.

Monday

No major data releases

Tuesday

Overnight                AUD         Mid-year Economic & Fiscal Report & House price Index

09:30                         GBP          Retail, Producer Price & Consumer Price Index

Wednesday

09:30                         GBP          Average Earnings, ILO Unemployment Rate & Claimant Count Change

10:00                        EUR          Industrial Production & Employment Change

 

13:30                         USD          Consumer Price Index Core & Food and Energy

19:00                         USD          FOMC Economic Projections & Fed Interest Rate Decision

Thursday

Overnight                AUD         Consumer Inflation Expectation, Employment Change & Unemployment Rate

09:00                         EUR          Markit PMI Composite, Services & Manufacturing PMI

09:30                         GBP          Retail Sales

12:00                         GBP          BoE Interest Rate Decision, Monetary Policy Summary, MPC Vote

12:45                         EUR          ECB Deposit Rate Decision

 

13:30                         USD          Retail Sales, Initial & Continuing Jobless Claims

13:30                         EUR          ECB Monetary Policy Statement & Press Conference

 

14:45                         USD          Markit PMI Composite, Services & Manufacturing PMi

Friday

10:00                         EUR          Trade Balance

14:15                         USD          Industrial Production

If you have an upcoming currency requirement and have not yet spoken to us about your options then drop us a call today to discuss how we can help you save money on your international money transfers.