Pound makes gains

Yesterday saw the Pound make gains across the board, assisted by better than expected Average Earnings Figure, coming in 3.4%, an increase on previous months figure. Since Christmas we have seen a steady increase in the markets, trading now at almost 3-month highs. Fuelled mainly by an unexpected reaction to Theresa May’s deal being rejected, either way, the increase in rates provides a good opportunity for anyone looking to convert their sterling. As we have seen previously when the rates go up this quickly there is normally a reaction and a correction won’t be far away. We have of course the vote on Theresa May’s Plan B on the 29th, which will be another unpredictable event, especially seeing how last week went.

Ministers are busy laying alternative options to the PMs deal, with a second referendum and a ruling out a no deal Brexit repeatedly being talked about. Theresa May has suggested a second referendum could cause civil unrest in the country but is yet to rule it out completely. And with pressure mounting from other parties, this next week could prove vital in the ongoing Brexit saga.

Data wise it is a fairly muted day, with the only key data for the day released at 1.30pm, CAD Core retail sales. today will be another day dominated by Brexit, as will the rest of the week. stay in touch with your account manager to be kept up to date.