Pounds pushes to a two month high amid Brexit uncertainty

18 January, 2019

Grace Rae

The Pound has surprised markets over the past few days by strengthening and providing the best trading levels against the Euro and Dollar in almost 2 months despite the PM losing the Brexit vote on Tuesday. Currency markets have been sitting firmly at a ‘see what happens’ crossroads over the last few days regarding new Brexit developments, while the likelihood of a hard exit from the EU reduces, perhaps no news equals good news for now? With undoubtedly more uncertainty ahead, the question now is how long are these currents trading levels set to last?

Moving away from Brexit, there are a few eco stat releases to note today. At 09:30 the UK is due to release the retail sales figures for Dec 2018. Markets are expecting no change to the YoY figure, remaining at 3.6%, however, any change in the results could provide some movement in the rates so worth checking in with us first thing to be kept up to date. After lunch, the Bank of Canada are due to post their Core CPI data at 13:30 and in the afternoon US FOMC member Williams speaks at 14:00, then shortly after US Industrial Production MoM data is released which is expected to fall from 0.6% to 0.2% for December.

If you have Sterling in hand and an upcoming currency requirement then get in touch with us here at Currency Index and find out more about how fixing your rate with our Limit and Stop Loss order can help you mitigate your risk to the markets likely volatility in the coming week and months, or how our Forward contracts can help you lock in a rate for your full requirement with just a 10% deposit, removing the headache of trying to manage an unpredictable currency market.