The Pound’s general direction has reversed this morning with GBP exchange rates up across the board of major currency pairs. Yesterday we saw Sterling come under pressure as UK Prime Minister May’s Brexit plan continues to come under scrutiny. At the same time US President Donald Trump suggested the deal looks great for the EU but not so much for the UK and questioned whether the US and UK would be able to strike deals once Brexit takes place.
This morning sentiment appears to have improved, and I believe that this is because there are media reports suggesting the Government will allow amendments to May’s Brexit plan to be put forward by MP’s ahead of the key vote next month.
Next month on the 11th of December there will be a meaningful vote on the withdrawal agreement and I think the Pound is likely to come under pressure between now and then owing to the uncertainty regarding the deals support. Two days prior to the vote there is talk of a televised debate involving Theresa May which could also be a potential market mover depending on how well she performs during the debate, as it could determine the support she receives.
On the Euro side there does appear to be some progress regarding the ongoing saga of the Italian Budget. The coalition government would like to spend more domestically than the EU is prepared to allow and this has been a drag on the Euros value for a while now. Should the matter get resolved I’m expecting to see the Euro strengthen as its been putting strain on Italy’s relationship with the European Union.
Later today at 4.30pm the Bank of England’s Brexit scenario analysis will be released and this will cover the withdrawal agreement. A Financial Stability along with stress tests on major banks will also be released so those of our readers following GBP exchange rates should be aware of this. You can also register your interest with us if you wish to be updated in the event of a major market movement.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on email@example.com and I will endeavour to get back to you as soon as I can.