Sterling has fallen slightly today, due to the lack of any progress with Brexit. This issue is likely to continue being the main driver for which direction the Pound takes. Anything that increases the uncertainty would weaken the Pound further e.g. a challenge to Theresa May’s leadership. If however an agreement can be made, Sterling is likely to rise.
In addition to the on-going Brexit saga, scheduled economic data releases will also affect the value of the Pound. Below I’ve outlined the main events that will affect exchange rates. For a quote or to discuss a specific currency pair, contact us today.
This week’s economic data releases
Monday 22nd October – It’s been a very quiet start to the week with nothing much of interest on the calendar.
Tuesday 23rd October – The only UK data of note are speeches by Bank of England (BoE) members including the governor Mark Carney. If he continues with his pessimistic tone about the effects of Brexit, this could push the Pound lower. Elsewhere we also have a speech by a FED member that could affect the US Dollar.
Wednesday 24th October – It’s quiet in terms of UK data with nothing of note. There’s plenty from elsewhere that could still affect exchange rates though. In Germany and the EU we have measures of inflation – a high reading would strengthen the Euro making it more expensive to buy. Canada has an interest rate decision, and I think they’ll push rates up to 1.75%. If they do, expect the CAD to strengthen and GBP/CAD rates fall.
Thursday 25th October – Today we see the ECB interest rate decision. While no change is expected to interest rates, comments in the press conference at 12:45pm often moves GBP/EUR rates. Anything that suggests ECB stimulus could be coming to and end would strengthen the Euro.
Friday 26th October – We end the week with US GDP numbers and a speech by the ECB president Mario Draghi.
Getting the best exchange rates
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