Sterling strength as No Deal Brexit fears diminish

Safe to say this past week has been a bit of a mess for UK Parliament. Multiple Tory sackings, opposition parties not backing the Prime Minister’s attempts to bring forward a general election ahead of the EU October summit, rumours of an election pact, and the House of Lords passed a bill to prevent a no-deal Brexit, and could also potentially force the PM to seek a Brexit extension to become law. After an eventful week, the weekend was no different. On Saturday cabinet member Amber Rudd resigned from her position as the work and pensions secretary to join the Tory rebel backbenchers, claiming the government were not focusing on formal negotiations with the EU for a new deal with more efforts being directed at preparing for a no-deal result.

Although the Brexit debacle continues, sterling did manage to gain some relief back against the Euro and Dollar over the past few days as the initial no-deal Brexit fears diminished, which provided a good opportunity for those with sterling in hand. In the week ahead we could well see some further increases however these are likely to be marginal and could also be muted quickly by the upcoming uncertainty of an October general election, and the Pound is still no way in the clear yet. Those with an upcoming requirement may want to get in touch with us here at Currency Index and learn about the various options we provide to help you best secure your currency and minimise your exposure to these volatile market.

With Brexit sentiment primarily paving the way for Sterling, it is still worth noting the key economic events lined up for the week ahead:

MONDAY
08:30 UK Manufacturing & Industrial Production and GDP

TUESDAY
08:30 UK Average Earnings, Unemployment Rate

WEDNESDAY
12:30 US Producer Price Index

THURSDAY
09:00 Eurozone Industrial Production
11:45 ECB Interest and Deposit Rate Decision
12:30 US Initial and Continuous Jobless Claims and Consumer Price Index
12:30 ECB Monetary Policy Statement and Press Conference

FRIDAY
07:00 Eurozone EcoFin Meeting
09:00 Eurozone Trade Balance and Labour Cost.
12:30 US Retail Sales
14:00 US Consumer Sentiment Index