- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- December 18, 2017
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Last week ended negatively for the Pound, even though the UK and EU are now moving to the next phase of negotiations- the fact that this next phase will be more “testing” than the first has caused the Pound to be sold off as investors are still not confident. Another major event last week was the Fed raising interest rates by 0.25%, with another 2-3 planned for 2018. For U.S Dollar buyers this information is useful as the rates are still well above 1.30 and a great time to be purchasing forward contracts to mitigate your exposure.
As we move into the last few weeks of the year, Brexit and negotiations around it will still be the main events on the markets- however on Wednesday; BoE Governor Mark Carney will be addressing Parliament and speaking about the UK economy- this is an important event as the BoE recently raised interest rates and inflation still seems to be shooting through the roof, all while wages remain stagnant. It will be interesting to see his views on the economy, and I believe this will be a volatile event for the Pound.
As far as economic data is concerned, there isn’t much of importance coming out this week, however the UK will be releasing GDP numbers on Friday, we are expecting this to remain on par, however it is always worth being aware of this release as any change (Positive, or negative) can have a large effect on markets.
As the year draws to a close, I would like to thank all our readers and clients for your support, if you are still yet to try our services this is a great time to review your FX requirements, we are happy to do price comparisons on previous trades to see how much of a saving we can offer on your transactions- you can do so by emailing us directly at firstname.lastname@example.org with the last date, time and amount alongside the currency pair traded- We can then reply to you with the prices we were offering at the time.
I wish you all a great Christmas and a very happy new year. Currencies 4 You will only be closed on the 25th-26th Dec and on 1st Jan, regular trading will be between these dates. If you do have payments to make prior to Christmas, I highly recommend getting these done before Friday to ensure your funds are received on the other end in time.