Further trouble for pound ahead?

With the bank holiday in the UK on Monday there were only 4 working days for data releases to have any effect on rates. However it was not data that had a say on the performance of sterling as before the week had even began the Pound lost over a cent on the Euro over the weekend. Negotiations for the UK to leave the EU are now in full swing as Brexit secretary David Davis was taking a press conference in Brussels yesterday as round one of talks has now drawn to a close, which could spell further trouble for Pound ahead. The press conference gave mixed messages as Michel Barnier was quoted to say “we did not get any decisive progress on any principal subjects” whilst David Davis had a more positive tone, saying the “high-stress week” of negotiations had delivered “some concrete progress”. Make of that what you will but this still does not bode well with Sterling, with the first round of talks showing no real positive signs of a significant move forward this adds more uncertainty and further trouble for pound ahead. The pound is currently at 8 year lows against the Euro and with some analysts predicting parity before the turn of the year it may be worth thinking about purchasing your currency sooner rather than later. A popular option in these uncertain times are our forward contract where you can lock in a rate for up to 2 years in advance with only a 10% deposit, get in touch with your account manager here today to find out more.

Today

Today there is likely to be movement in the currency market with important data being released throughout the day. Starting at 9am in the euro zone with markit manufacturing, it is expected that the figure will be the same as last month at 57.4, should this be different then we can expect the rates to react. In the afternoon it’s over to the US as non-farm payrolls and the unemployment rate at 1.30pm, expect volatility in the rates during these releases