As an update if you plan to buy Euros, it may interest you to know that GBP has stabilised today. This is because the Bank of England (BoE) Governor Mark Carney has made it clear that he is still committed to raising UK interest rates over the coming quarters. The main reason for keeping the rates on hold was to determine the outcome of Brexit, rather than how the economy had been performing.
UK unemployment has fallen to its lowest in 44 years at 3.9%, and even with Brexit woes, the UK economy continues to outperform the Eurozone. The UK’s growth has slowed in the short term, although Mark Carney was optimistic that we would see a faster recovery next year.
The BoE has upgraded its forecast for first quarter GDP growth from 0.2% to 0.3%, which is encouraging. If it wasn’t for Brexit, the Pound could hypothetically be trading above the 1.2000 level against the Euro.
Next week is a quiet week for UK data releases. So after a slight diversion from Brexit this afternoon, thanks to the Bank of England, the focus is likely to be back on Brexit and the outcome of the 3rd Meaningful Vote.
The UK is due to leave the UK in 8 days’ time on the 29th March, unless Parliament agrees to Prime Minister Theresa May’s deal. This has already been rejected twice by the House of Commons. We could find ourselves with no deal in place by this date by default.
Should I wait to buy Euros?
The way that events have unfolded recently seems to indicate that both the UK and the EU want to come to a resolution that doesn’t involve defaulting to a ‘no deal’ Brexit. However, if a ‘no deal’ ends up being the case, this could result in sharp falls for Sterling.
If you are looking to buy or sell Euros, it’s worth being in touch with your account manager to develop your strategy. This is because the immediate future of Brexit and the Pound remains uncertain.
With an uncertain future ahead, should you need to discuss forthcoming Euro transfers, please feel free to get in touch. You can email me directly here.