Sterling continues to weaken in the midst of uncertain times in Theresa May’s cabinet. May has been called to sack her international Trade Secretary and Foreign Secretary over separate failures. With her minority Conservative government already fragile, this latest crisis further undermined May’s authority and ability to govern. Reports also suggest major US banks are ready to trigger their Brexit contingency plans and start moving jobs out of London.
The Dollar weakened against the Pound at the end of last week, this was due to the lack of confidence in the US after their proposed tax reform bill was delayed until 2019. Also due to the UK economy showing significant strength.
Inflation levels have remained below the Federal Reserve’s target so they may hold off raising the interest rates until early next year.
Strong end to the week for the single currency with some strong data from Germany and the Eurozone economic forecast. Germany’s trading surplus came in at 24.1 Billion 4 billion above expected showing continued strength in the Eurozone’s already strongest economy. Along with this the Eurozone’s growth forecast was up from 1.7% to 2.2% for 2017, this would be Europe’s strongest economic growth in a decade.
Tue 21/11/2017 – GBP Inflation Report Hearings
Wed 22/11/2017 – EUR non-monetary policy’s ECB meeting
Thu 23/11/2017 – EUR monetary policy meeting
With growing pressure on Theresa May, strong economic grow in Europe and Brexit negotiations set to recommence GBP/EUR is likely to be extremely volatile over the next few weeks. If you have an up and coming transfer then get in touch with one of our traders to discuss your options and the tools available to get the most out of your next transfer.