Pound down following Tory dissent, news of Brexit vote surfaces

Yesterday was a quiet day in the way of data releases but one that saw the Pound suffer. News that Theresa May was facing a potential 40 member strong backbench revolt saw the Pound drop over the weekend and as we opened trading yesterday. This is just 8 members short of the required majority to force a leadership election, and as such jitters grew and the Pound suffered. This came in a day where we saw a late report suggesting that the UK parliament will get a final vote on the Brexit deal, and will be able to amend or reject the proposal prior to its acceptance. This news came in late in the day so it is hard to see how the market wall react to this as yet. Will this only increase uncertainty surrounding the negotiations and therefore cause the Pound to drop further? Is this likely to increase the dissent from the backbench Tories and could we see a leadership battle emerge in the coming days?

What is certain is that with these issues in the news each day, the Pound remains at risk as does the rate. Those of you reading this might like to consider the risk as the longer the situation goes on we are only likely to see the Pound suffer further.

Today’s Economic data releases

Today is an extremely busy day in the way of Economic data releases, and one where we also see speeches by the heads of the 4 big central banks, so be prepared to see big movements in the rates. We have already seen a raft of data releases from Germany including their Harmonized index of Consumer Prices, albeit all releases came in as was expected so we have not seen any real movement today as yet.

At 09.30 this morning we have several key releases from the UK including retail price index, producer price index, housing data and most notably inflation. All eyes will be watching this release after last month’s reading of 3% and following the recent hike by the Bank of England.

At 10.00 we have speeches from Yellen, Draghi, Carney, and Kuroda the heads of the Federal Reserve, European Central Bank, Bank of England, and Bank of Japan respectively at a European Central Bank conference, and the same time we also have Eurozone GDP figures released. In the afternoon the focus shift to the US who release several ecostats although none of major note, but given the morning we have in store it is likely to be a very bumpy day for rates ahead.

If you have any upcoming transfers to make, speak to your Currency Index broker today who can help guide you through what is an extremely busy day, and one which poses a lot of potential risk. Currency Index can help you stay well informed and ahead of the market, whilst offering you several ways to help protect your budget in what is a very volatile time. Speak to us sooner rather than later to avoid any potential costly drops in the rate that we might see today.