Pound Strengthens this Week Following Data ReleaseOctober 21, 2016 2:35 pm
Following Brexit results, the British Pound has continued to fall seeing its lowest level in 31 years. It fell again earlier this month when May announced that the UK’s separation from the EU is going to be earlier than expected. This means there will not be the‘soft Brexit’ approach which everyone was expecting. There are whispers that GBP will continue to fall with businesses and currency traders fearful of the economic consequences. We have seen a slight up-turn this week, however, with GBP – EUR and GBP – USD strengthening after UK data regarding retail sales was higher than expected.
Although the Euro has strengthened against the Pound since Brexit; it is still performing poorly against the US Dollar and dropped to the lowest level in three months. The European Central Bank have continued to hold interest rates steady and will not be making any changes. With Brexit on the horizon; the future of the Euro doesn’t look bright and it is predicted to fall lower into Q1 2017.
This is good news for any trades with the US as the currency remains weak, more traders will buy from Europe and continue to keep the economy growth strong.
The USD has experienced some volatility due to the current U.S election campaign between Democrat Hilary Clinton and Republican Donald Trump. Hilary is now a clear overall favourite in the race for presidency over the United States of America. Over the past months the USD has gained tremendous strength against the EUR and GBP. As a result of the Brexit vote, the USD saw the GBP fall against the currency. Be prepared for lots of movement with this currency over the next few weeks.
If you would like some advice on the currency market, please get in touch with our UK-based Support Team on +44(0) 203 603 8940 or email [email protected]Tags: gbp to eur, gbp to usd, transfer money abroad
Categorised in: News
This post was written by Kayleigh Driscoll