Trading remains flat

Yesterday was a relatively flat day in the currency markets continuing to trade within its recent range. GBPEUR held its gains made on Tuesday on the back of some positive Brexit news. With further Brexit talks now not far away, we can expect to see increased volatility up to and indeed during the course of the talks. With some key issues yet to be resolved and no clear solution currently in sight. This still includes the right EU nationals living in the UK, an issue seems to last on forever now.

Yesterday’s data failed to move the markets as many had anticipated. With many eco stats from the Eurozone coming in well below expected, GBP failed to make ay notable gain on its major pairings, suggesting the levels we have now could be the best for a while yet as poor Euro data still leaves the Pound floundering to its post Brexit lows and any change in this trend still far from being over. The early morning data from the UK saw no change as the average earnings figure coming in as expected and priced into the markets. There were some positive predictions for the coming months as BoE expects a wage increase of 3% in the first quarter. However, markets failed to take this into account and rates remained unchanged.

A busier day today with data from the UK, Eurozone and USA, with rates expected to react as February draws to a close. Stay in contact with your account manager to discuss your best options.