If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Weekly roundup: Pound sterling boosted as EU leaves door open to UK post-Brexit

currency-newsWeekly roundup: Pound sterling boosted as EU leaves door open to UK post-Brexit
The pound had a slow start last week as the UK data calendar was empty on Monday and inflation figures on Tuesday left markets unimpressed.

While a slowdown in the pace of core consumer price growth from 2.7% to 2.5% year-on-year for December does alleviate the pressure on household budgets – thereby improving the outlook for consumer spending – it also lowers the odds of an interest rate hike from the Bank of England (BoE) any time soon.

However, things picked up on Wednesday after Jean-Claude Juncker, President of the European Commission, observed that the UK could always re-join the EU once Brexit was completed by using Article 49 of the Lisbon Treaty.

French President Emmanuel Macron pressed home the idea of a Brexit reversal on Thursday, when an aide speaking on his behalf told reporters in Paris that France would look ‘with kindness’ upon the UK changing its mind over its decision to leave the EU.

Friday’s retail sales figures somewhat took the shine off the pound after showing a worse-than-expected rate of decline month-on-month, meaning year-on-year sales growth was only around half of what economists had been predicting.

Impactful UK data is in plentiful supply this week, starting with tomorrow’s government borrowing figures and Confederation of British Industry (CBI) orders and selling prices data for December.

Wednesday’s average weekly earnings figures for the three months to November are expected to show no change to pay growth – a somewhat disappointing result for markets, which are looking for an uptick to narrow the decline in real wage growth.

The end of the week promises much Sterling turbulence, with the fourth-quarter GDP figures released in the morning and a speech from BoE Governor Mark Carney in the afternoon.
 
Currencies Direct

Currencies Direct

Currencies Direct is one of Europe's leading non-bank providers of currency exchange and international payment services. Since we were formed in 1996, we've maintained our focus on providing innovative foreign exchange and international currency transfer services to corporations of all sizes, online sellers and private individuals. We have also expanded our services to provide dynamic and pioneering "business to business" solutions to help companies, tier 2/3 banks and other non-bank financial institutions to process their international payments. Our headquarters are in the City of London (United Kingdom) and we have operations in continental Europe, Africa, Asia, and the United States. Currencies Direct is jointly owned by private equity firms Palamon Capital Partners and Corsair Capital.

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.