After a couple of months of non-stop weakness- we finally had a week of green for the Pound! We ended last week with GBPEUR sitting just above 1.06 following very poor GDP figures and investors selling off the Pound due to Brexit news. By Friday 16th August GBPEUR had now hit 1.10 again due to positive wage growth data, retail sales and inflation numbers.
The positive news here is that the markets have been paying attention to economic data which has evidently helped the Pound, of course, Brexit is still the main topic, but it has been nice to finally report some form of positivity for Sterling!
The odds for a general election this year also seem to be picking up which could be turbulent for the Pound considering the movement we saw in the last election- if for whatever reason Jeremy Corbyn was to triumph, he has made clear that he would campaign for a second referendum which would bring much positivity for Sterling in the short-term.
Parliament is still in recess for the next couple of weeks so I am not expecting to see anything official from the Government until September, and even though this SHOULD mean nothing negative will happen, unfortunately, this doesn’t stop any MP’s from making press releases which could still move the market.
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