Volatile Week For Sterling
Sterling dropped around a cent against all major counterparts last Monday and Tuesday as Ben Broadbent, Deputy of the Bank of England warned that if trade links between the UK and the EU weakened then both parties would suffer higher prices and lower exports. Traders expected there to be talk of an interest rate hike however Ben Broadbent was hawkish and downplayed the possibility of rate hike. GBP/EUR had dropped to 1.11 the lowest since October last year.
Friday saw the pound surge as Bank of England official Ian McCafferty implied that the BoE should consider slowing down it’s quantitative of easing programme. The pound reached three week highs against the Euro as it reached 1.14 and reached 1.31 against the Dollar. Round two of Brexit negotiations start this week with the U.K.’s final goal still unclear and increasingly public splits in the Cabinet about what the final divorce should look like.
All eyes will be on Mark Carneys speech on Tuesday as any mention of rate hike or downplay of a rate hike will see Sterling volatility. If you are looking at buying or selling Sterling in the near future get in touch with your trader to get the most out of your currency transfer in these volatile times.
Eur- Consumer Price Index- Core (YoY) (Jun)
GBP- Mark Carney Speech
Eur- ECB Interest rate decision