Sterling hits monthly lows
17 May, 2019
Yesterday we saw the Pound take a further dip, taking it to the lowest rates we have seen since February against the Euro and Dollar. It has come to light that cross-party talks are not progressing enough or leading to any resolution despite claims that previous discussions between the Prime Minister and Labour leaders have been “constructive”. The PM has also indicated that she will bring her deal back to the House for a vote in the week commencing 3rd of June, even though it has received three defeats already, it’s difficult to see how she will get it voted through on a fourth attempt. But who knows, perhaps we could see a turn around? (although unlikely) In the event her deal isn’t passed through, it has been reported that Theresa May will resign and begin the election process to select her successor. Overall not a great outlook for the Pound in the short term at least, and further uncertainty is set ahead. Our regularly readers know that uncertainty doesn’t result in Sterling moving in a positive direction, but this news may provide some relief for those with other currencies in hand and looking to repatriate their funds back to Sterling. It’s worth giving us a call to get things set up in advance in the event the Pound makes any small recovery.
Much like yesterday, there are no major economic data releases due for the UK. The focus this morning will be on the Eurozone posting figures for April’s Consumer Price Index which YoY is expected to remain at 1.7%, then this afternoon at 15:00 the US are due to release their Consumer Sentiment Index which is set to improve from 97.2 to 97.5. This figure provides a view on consumer spending an a high reading is seen a positive so if the expected results come through we could see the Dollar strengthen.
In other news, it was revealed yesterday that five major banks have been issued a €1bn fine by the European Commission for involvement in various “currency cartels” between 2005 and 2008. Individual traders at the banks were found to have been rate-rigging using ‘day rates’ and online chatrooms to communicate sensitive information on clients open positions, exchanging trading plans to co-ordinate trading strategies in order to maximise their return. Shady behaviour! Thankfully, we offer the protection of buying your currency requirement live in the market to ensure you get the very best rate of exchange and protect you against volatile market movements.
The Brexit clock is quickly running out of time with only a few months left before parliament take their summer recess, actual constructive time is shortening. A tricksy market is set ahead with sentiment paving an uncertain path, stay in touch with your contact here at CI to be kept updated of markets movements and to discuss the best options for you to consider to help you navigate your currency transfers.