Pound down following Brexit negotiation stall and accusations of economic over-optimism
9 November, 2017
Yesterday was quiet in the way of economic data releases, but one that saw the Pound down following Brexit negotiations and following a report that suggests the UK is being overly optimistic about its economy. As a result, we saw the Pound lose across the board and notably just over half a cent against the Euro and almost a cent against the Dollar throughout the day’s trading.
Reports came out early in the day that the UKs offer on the rights of EU citizens which suggested a 2 year grace period, was rejected by EU officials, with Brexit co-ordinator Guy Verhofstadt labelling it as totally inadequate. This rebuttal came less than 24 hours before the next round of negotiation talks due today, and once again news of the talks stalling saw the Pound lose ground.
Elsewhere we saw a research report by BNP Paribas, Frances second largest bank suggesting to their clients that they saw the Pound declining in the coming months and through the first half of 2018, as economic growth would underwhelm current expectations. This did not help the already struggling Pound and only added to its woes in what was a poor day.
Today’s Economic releases
Today sees many economic releases from around the world although none of any major note. Ones to watch out for – European Commission releases growth forecasts at 10.00, the UK NIESR GDP estimate at 13.00 and then US jobless claims and unemployment data at 13.30.
With little economic data out, eyes will be firmly fixed on Brexit negotiations as we see the next round kick off between David Davis and Michel Barniers teams. Given the seemingly slow pace and difficulty to reach agreement, will we see another day of losses for the Pound if still no good news is reported? Or will we see it announced that some agreement has been reached and the Pound rally?
If you have any upcoming transfers to make speak to your Currency Index broker today for some friendly guidance on how to get the most out of your transfer. In what is such a volatile and unpredictable market we can offer several ways in which you can order your currency to help protect your Budget. And while the market is moving up and down so quickly we can be your eyes and ears on the ground to keep you up to date with anything that might move rates and effect your budget.