Pound finishes on a high

18 June, 2018

Nakhil Mahra

A busy week last week saw some movements, at last, breaking the recent tight trading range. The ECB meeting confirming what most thought, that there will be no immediate change to the QE programme, resulting in Euro weakness. With some positive UK eco data during the week, assisted in Sterling gaining a cent by close of business on Friday. A purchase of 100,000 Euro’s costing you £980 less than the start of the week. Enough of a saving to pay for a nice family holiday perhaps.

However historically whenever we have reached these highs, the Euro has managed to claw back ground swiftly. Should history repeat itself the current highs could only be around for a few days, indicating this could be a brief buying opportunity so if you have a requirement coming up then why not take advantage of our forward contracts? You can secure your rate with only a 10% deposit. Certainly with so much uncertainty still surrounding Brexit negotiations, and questions still being asked of Theresa May and if she is the right person to lead us out of the EU. Backbenchers suggesting she lacks the backbone required to hold firm against her EU counterparts.

This week is another busy week with Mario Draghi speaking twice as well as the BoE meeting later this week. Will we have further clues to an interest rate hike later this year?

6:30pm ECB president Draghi speaks

9:00am ECB president Draghi speaks
1:30pm USD Building permits

2:30pm ECB president Draghi speaks
2:30pm Fed Chair Powell speaks
3:30pm USD Crude Oil inventories

12:00pm MPC Official bank rate votes
12:00pm Monetary Policy summary/Official bank rate

1:30pm CAD CPI