The Pound to Euro exchange rate fell to 1.1373 on Friday after reaching a weekly high of 1.15 the day before. We also saw the same with the Pound to Dollar exchange rate, reaching 1.26 on Thursday and falling to 1.2480 as we closed the week.

Donald Trump’s latest comments about China have induced fresh trade tensions between the two nations- and with UK/USA trade talks beginning on Monday, investors are worried about how talks will go and sold off Sterling to avoid any nasty surprises at open Sunday night.

Sterling is not looked at favourably right now due to the fact that we are among the last European countries to even consider exiting the lockdown, which has effectively crippled the economy, the BoE will also be set to announce further stimulus measures very soon which will weaken Sterling, and Brexit negotiations are still ongoing with a deadline soon approaching in June.

This week we are expecting to get a detailed plan from Boris Johnson on how the UK lockdown will be lifted, and this will effectively where Sterling goes next- it is unclear on when the lockdown will be lifted and I feel it still maybe after he speaks, but some direction will be welcome at this point for Sterling.

Sterling exchange rates this week will be dictated by the following- BoE interest rate decision (7am Thursday), Brexit talks, Coronavirus numbers & any credible rumours/facts about the UK lockdown being lifted.

Sterling has been one of the most volatile currencies during this period- and unfortunately I still think this will remain for the time being- there are opportunities for both buyers and sellers in this market but having a plan is paramount- if you would like to discuss strategy please don’t hesitate to contact me.