The Brexit fallout has continued to see Sterling fall against the Euro since the announcement of the Brexit vote.
Bank of England governor Mark Carney will be speaking tomorrow and will publish the latest Financial Stability Report which will likely include references to the recent impact of the Brexit and he could suggest further easing may be necessary to avoid a down turn for the British economy.
The likelihood is that we’ll see an interest rate cut and potentially another £250bn pumped into the British economy at some point this year. The rumours have been taken well by the stock markets which has risen to pre-Brexit levels as further stimulus is good news for the FTSE.
However, the Pound has struggled vs the Euro owing to this potentially happening and we could see further falls this week.
The NIESR are due to publish an estimate for the previous quarter for UK GDP and any signs of a downgrade could see Sterling struggle against the Euro.
Politically the UK is under huge pressure as we go on the search for a new Conservative leader and the Labour party looks to be in turmoil with various senior members having resigned since the referendum announcement.
My overall prediction for the week is Euro strength vs Sterling.
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