Pound weakens further
2 March, 2018
Yesterday we saw the Pound weaken further across the board. with the EU piling the pressure further on Theresa May and the Torie government to come up with an alternative to their plans regarding the Irish borders. With a meeting has taken place at 10 Downing street yesterday between May and Tusk, we will find out today what the result has been with a big Brexit speech expected on the relations with the EU after Brexit.
Should any negative news or EU positive news filter out from the speech, the Pound is sure to fall further having already lost the best part of a cent over the last week against the Euro and almost a cent and a half against the USD, hitting a 6 week low against cable. Those of you who booked a forward contract with us last week – or even the beginning of this week has already seen the benefits you are now sitting pretty above market.
Yesterday’s data saw UK figures come in as expected. Manufacturing PMI coming in at 55.2 but going with the week’s trend, even good data is doing little to move sentiments back in Sterling’s favour. There was more positive data across the pond with US ISM Manufacturing above expectations at 60.8%, further assisting the recent USD resurgence.
Today is a busy day for GBP – with both the PM and Carney speaking, we are sure to see volatility in the markets. Should the Pound fall further we would be at the lowest since pre-Christmas and only just above the levels seen in September. As well Canadian GDP at 1.30pm this afternoon, this is expected to fall slightly compared to last month so if you have a CAD requirement getting in early doors would be a good idea.
We have already seen some low key Euro releases with German retail sales and import figures coming in as expected. With so much happening before the weekend stay in touch with your account manager to discuss your best options.