The Pound had a very positive week following a transition deal being agreed for Brexit alongside strong wages data and a very bullish Bank of England statement. GBPEUR exchange rates hit 1.15 and GBPUSD exchanges soared above 1.40 once again. These highs were of course, short-lived as the Fed put their interest rates up and signaled to be on course for a few more in 2018 which could be pretty bullish for the U.S Dollar. GBPEUR exchange rates also fell back below 1.15 (1.1501 is a key resistance area) as buy volume begun to diminish through Friday.
Moving on to this week, there are not many key data releases due to the Bank Holiday, but I am aware that many clients are looking to complete properties & orders before the month ends so I have detailed below the main events over the next 4 working days.
Tuesday- U.S Consumer Confidence- Expected stronger so could strengthen the U.S Dollar and push down GBPUSD from current higher levels.
Wednesday- U.D GDP- Expected stronger, another case for GBPUSD to move lower if this comes out as expected.
Thursday- UK GDP- Expected on par at 1.4%- due to recent strong UK data a higher figure could be released which would strengthen the Pound, if not this current figure would keep Sterling at current levels.
The Pound has been pretty rangebound throughout this first quarter, and for many clients who took out forward contracts in January, in hindsight this was a wise decision as it took 3 months to rebound after a 4% drop following the highs of the first 2 weeks of the year. If you are currently evaluating your FX requirements and would like for me to assess your situation with you and give you detailed analysis then please don’t hesitate to contact me directly.