Pound falls further

3 June, 2019

Nakhil Mahra

Last week, the Pound lost further ground, now falling in value six weeks in a row. All the uncertainty surrounding Brexit and who will be the new PM, slowly chipping away at the Pound. May ended with rates the lowest they have been for four months, with no immediate uplift forecasted. If you have a currency purchase coming up, you may want to look at your options to minimise your losses.

With the leadership challenge underway next week Monday, we have 13 names in the hat, with BoJo the bookies early favourite. However, a new PM will not necessarily mean a solution to Brexit, as any deal, or no deal, will have to get through parliament first and should they want to make changes they will need to rip up the current deal and renegotiate as the EU have already said, this current deal is the final offer. 31st October may no be the day we leave the EU as we could see another extended period of uncertainty.

Over the weekend, Donald Trump had his say, claiming the UK should leave the EU with no deal and send in Nigel Farage to negotiate that! The Pound starts June on the back foot, will it show any signs of picking up momentum through the month and show any signs of tipping the balance and moving on the front foot and make any gains?

With a new month, we have a new raft of data that comes with it. We have a busy week ahead.

Monday 2pm USD ISM Manufacturing
Wednesday 9.30am GBP Services PMI
Thursday 10am EUR revised GDP
BOE Gov Carney speaks
12.45pm EUR Monetary policy statement
1.30pm ECB Press conference
Friday 1.30 USD Unemployment rate

To be kept up to date, please stay in touch with your currency consultant.


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