Slow start to 2018, but breakout of rates expected imminently
4 January, 2018
It has been a quiet start to the year thus far with relatively little data released for the market to move off. As such rates have remained relatively flat, particularly for the Pound as an undercurrent of Brexit uncertainty continues, and with no real UK data released until the 3rd week of the month.
GBP/EUR remains very tightly rage bound only having moved within a 0.5% range since the 20th December. A weak USD has allowed the Pound to gain 2 cents within the same period, which is also highlighted in the EUR/USD cross having now pushed up to the highest levels we have seen since September.
With the Pound flat at present we will however likely see movements as the markets slowly awaken for the year ahead, and as Brexit talks begin to take shape again. Given the tight range against the single currency it is difficult to know at this stage which way it will go.
Last night new emerged the Merkel is re-entering talks to form a coalition in Germany and this has seen the Euro begin to strengthen, as this bodes well for a strong currency. Those of you who have been holding out might like to consider the possibility that this strong Euro may push rates down and outside the tight range we have seen the last few week, and take opportunity now. The strong single currency also putting pressure on the Greenback could also cause a shift in GBP/USD rates currently the highest they have been in a few months.
Should you have any upcoming currency requirements speak to your Currency Index broker today for some friendly guidance on how to get the most out of your transfer, and avoid any costly shifts in the rate.
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