The Pound has made some gains vs the Euro during the course of the week with Prime Minister Theresa May announcing her Brexit strategy on Tuesday.
She stated that the UK would look to leave the single market if we are unable to control our borders and also if we are to fully leave the European Union we would be unable to stay in the single market.
However, at the same time May went on to say that the UK would be looking for new trade deals across Europe and the globe and that we would be looking for the best possible outcome for the UK.
May also stressed that she would be looking to keep rights for Britons currently living abroad and maintain a reciprocal deal with Europeans living in the UK.
The positive tone of the speech helped to push the Pound up against the Euro after falling over last weekend.
With the Supreme Court judgement due on Tuesday its importance has fallen as it appears as though Theresa May got in there first and said that the UK would seek parliamentary approval.
I still think the judgement will be extremely important and this is likely to cause a lot of volatility for GBPEUR rates once the news has broken so it is important to watch out for the release.
In the meantime we have also now seen the inauguration of Donald Trump into the White House and it will be interesting to see how the financial markets will react now that he is President.
In his speech yesterday he spoke about giving power back to the people which all sounds very positive but it will be difficult to see this working in practice.
Clearly there has been an obvious shift in power and I think once the US financial markets are open again on Monday morning we could see further volatility on the global foreign exchange markets.
I personally think we could see some Dollar strength which often results in Euro weakness so my prediction for the week is for Sterling to rise against the Euro.
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Tom Holian email@example.com