Blog


Steady Sterling for 2018

The British pound is set to mostly hold steady against both the dollar and the euro this year, but much will hinge on progress in Britain’s talks with Brussels on its withdrawal from the European Union.

Currency strategists weren’t brimming with optimism on how the next stage of talks will go, but most do not think the pound is set for another major fall, either.

The results suggest growing risks for the British currency following its largest annual rally since 2009. Sterling rallied 10 percent last year, in large part because the U.S. dollar marked its worst performance in 14 years.

Market doubts over whether a trade deal can be done may hurt sterling, as would delaying any agreement until early 2019. Markets focussing on implications of a possible Labour government could also hold back the pound.

The dollar edged higher against other major currencies today, as investors were eyeing the release of highly-anticipated U.S. employment data due later in the day.

The U.S. dollar briefly recovered after Fed policymakers acknowledged, in the minutes of the Federal Reserve’s December meeting released Wednesday, that the U.S. labor market and economic activity remain strong, despite persistently low inflation.

The minutes seemed to suggest that the central bank will continue to raise rates gradually, but the pace could pick up if inflation rises.

Leave a Reply

Your email address will not be published.

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Currency Cloud Limited and Equals Connect Limited. Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number: 900199. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. | Terms and Conditions | Privacy Statement | Careers