Despite a dead cat bounce on Wednesday the pound is taking further losses against nearly all of the major currencies this morning. A case in the high court starts today which will look to seek parliamentary approval before Britain can officially withdraw from the European Union. This new political development could create a huge amount of volatility for the pound going forward as the decision will have an impact on how much of a say parliament has across the spectrum of Ministers and which will have an impact on the type of Brexit chosen.
Data is light as we end the week but UK inflation numbers are released next week. There is a currently a battle between Tesco and Unilever as to rising prices as a result of the weaker pound which is driving up production costs so this is highly topical with Tesco refusing to stock Unilever products. Inflation should start to climb in the coming months so it is just a matter of time before it appears in the official data.
Next Thursday sees the European Central Bank (ECB) meeting where we will see if any changes to monetary policy are made. The ECB has been battling with low inflation and very weak growth for years now and there is pressure mounting to do more. Clients with a currency requirement would be wise to consider their options prior to the meeting.
Clients who are buying or selling Euros are continuing to see a very volatile period at the moment which is unlikely to change any time soon. The Brexit jitters are keeping the pressure on the pound. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]