Brexit votes to rock Sterling this week
[vc_row][vc_column][vc_column_text]The pound fell back against the majority of its peers last week, limping over the finishing line as Brexit jitters rocked the currency ahead of a series of key votes.
Sterling appears steady at the start of this week, with GBP/EUR flat at €1.1571, while GBP/USD holds at US$1.3009.
Looking to the week ahead, we can expect the upcoming Brexit votes to result in some notable swings in the GBP exchange rate.
The pound fell back last week, driven lower by some weak economic data as well as elevated market jitters amidst a stalemate in Brexit talks.
Kicking off the session last week was the publication of the UK’s latest PMI figures, with the pound weakening as the data highlighted a potential slowdown in the UK economy.
This came as a result of the PMI figures revealing that staffing levels in the UK’s private sector slumped in February, with UK firms slashing jobs in the face of Brexit uncertainty and a slowdown in global growth.
The downtrend in Sterling then carried through to the second half of the week as nerves began to fray again with Brexit talks remaining deadlocked and the UK unable to secure legally binding changes to the Irish backstop.
This culminated in a sharp fall in the pound on Friday, as heightened uncertainty saw investors steer clear of the UK currency ahead of a series of key Brexit votes.
Looking ahead, the expected defeat of Theresa May’s withdrawal deal and subsequent votes on no-deal and delaying Brexit will undoubtedly dominate Sterling sentiment this week, likely resulting in some major swings in the pound throughout the session.
The votes are also likely to overshadow all other events this week, with Chancellor Philip Hammond’s Wednesday Spring Statement expected to barely register on radars.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
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* Information courtesy of Currencies Direct, Philip McHugh
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)
The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information. This article was written by Currencies Direct.
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