Sterling rocked by Brexit uncertainty
[vc_row][vc_column][vc_column_text]The pound traded in a wide range last week as the UK currency was hit by fresh Brexit uncertainty and mixed economic data.
Sterling opens this week on a more stable footing however, with GBP/EUR flat at €1.1431, while GBP/USD holds steady at US$1.2928.
In focus this week will be the Eurozone’s latest PMI figures, with another slowdown in private sector growth expected to drive the euro lower.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Pound volatile as Brexit uncertainty builds
The pound fluctuated through last week’s session, driven by renewed Brexit uncertainty and some mixed economic data.
Kicking off the week was the release of the UK’s latest GDP figures, which saw Sterling weaken as economic growth was reported to have slowed to a six-year low in 2018.
These losses were then extended on Tuesday as Theresa May updated the House of Commons on the current state of Brexit negotiations.
While Sterling was able to claw back some ground mid-week, these gains proved to be short lived, with GBP exchange rates nosediving on Thursday as Brexit uncertainty soared following a defeat for the PM in the latest parliamentary debate.
However, the pound was able to mount an impressive recovery on Friday on the back of soaring retail sales growth in January and reports the EU may be willing to improve its offering to the UK in order to get a Brexit deal across the finishing line.
Looking ahead to the remainder of this week’s session, Brexit is likely to remain the main focus for GBP investors as talks continue in an effort to find a deal that works for both the UK and EU, with Sterling potentially weakening again unless some breakthrough is forthcoming.[/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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