Could it be a stormy December ahead for the UK’s government?
28 November, 2018
As we near the end of this trading month there is much to reflect on. We have seen the pound react directly with Brexit developments, losing ground as speculation over the PM’s position being challenged increased then saw some recovery when a draft deal had finally been agreed by all 27 EU leaders. Although a deal on the table sounds like a positive step towards our exit from the EU, there is still a long way to go. Further reports of a leadership contest have re-surfaced so government uncertainty is once again on the cards – one thing our regular readers will know is not what an already struggling currency needs. It could be a stormy December ahead for Theresa as she faces a busy fortnight ahead while she attempts to sell her plan to the public to gain new support before the parliamentary vote which is set to take place in the 11th of December.
Yesterday rates remained stable with no big swings to note but today could be different. The Bank of England are due to release their latest stress test results and financial stability report. Worth noting as this could provide more light on the banks expectations further to the new departure deal. This is followed by a speech from the Bank’s Governor Mark Carney in the afternoon, due at 16:45.
Also in the afternoon the US are due to post several data releases. At 13:30, gross domestic product index is released which provides an indicator of inflationary pressures and could influence future interest rate changes. The result is expected to remain the same but any change here could see the USD fluctuate. Core consumption expenditures is also due at 13:30, again this is expected to remain the same at 1.6%, and later in the afternoon the Fed’s member Powell speaks at 17:00.
Its highly likely we will have further turbulent times ahead of us, and if you have a requirement to exchange your Pounds to Euro, Dollars or any other currency for that matter ahead of Christmas and the New Year, then do get in touch with us here at CI to be kept updated and informed on the latest currency movements to help you mitigate any losses and get the most from your exchange requirement.