The Pound has had a pretty steady week even though there has been some movement in regards to Brexit. There has been confirmation that the Brexit deadline has been extended to 31st October, whether this will actually happen is a different story, but for now, this is the date that we have.

GBPEUR rates this week stayed between the 1.15-1.16 region, however, we saw Sterling make significant gains against the US Dollar and brought the exchange rate above 1.31 by the end of the week due to weaker than expected US consumer sentiment figures.

The next week will now be very much focused on the UK job market and inflation, both unemployment and earnings data in the UK have been performing well in 2019 and a continuation of this trend could see Sterling strengthen further against the Dollar and potentially against the Euro. If the above data comes in strong then this will make a case for the Bank of England to look at raising interest rates which will also strengthen the Pound long term, especially as both the Eurozone and the US are not expected to raise interest rates anytime soon.

Fortunately, there will not be much Brexit news for the next month or so due to the extension, so the markets will now be more reliant on economic figures, which means the exchange rates should be more stable until we receive further news.