Sterling exchange rates vs the Euro have ended the week lower after the latest round of Brexit talks in Brussels. The topic of Brexit is clearly the main driver of what will happen to the Pound in the future.
We saw UK Retail Sales come out much better than expected but the Pound didn’t see any real movement against the Euro as investors remained focused on the ongoing Brexit talks.
The leaders across Europe have allowed to let the Brexit negotiations move onwards towards the second phase of discussions. However, Prime Minister Theresa May remains under a lot of pressure both in Europe and closer to home.
She has the unenviable job of trying to maintain a positive relationship with the European leaders as well as trying to quash a Tory revolt.
European leaders have agreed that the talks can move on with the UK remaining in the customs unions and single market during the transitional phase but this still does not confirm what will happen after the negotiations have ultimately finished so we are no closer to finding a solution at this moment in time.
Therefore, we could continue to remain in an uncertain period for quite some time to come for the Pound so don’t expect to see any big gains coming for Sterling.
In the middle of next week Bank of England governor Mark Carney is due to address the markets.
His tone has been rather cautious in previous statements so I expect more of the same which could cause the Pound to wobble against the Euro.
If you’re in the process of either buying or selling Euros and would like to be kept updated with what is happening over the next few days then contact me directly for a free quote.
Having worked for one of the UK’s leading currency brokers since 2003 I am confident not only of being able to offer you better exchange rates than using your own bank but also help you with the timing of your trade.
Contact me directly Tom Holian teh@currencies.co.uk and I look forward to hearing from you.
