I am sure by now we are all sick of these Brexit headlines, but unfortunately, until we have a resolution they will continue. The UK seems confident that a deal will happen this month- the only problem being this isn’t the first time we have heard these sort of comments. The Pound had a pretty bad week dropping to 1.27 against the U.S Dollar and going below 1.12 against the Euro. GBPUSD is still under 1.30, but the GBPEUR rates have retraced due to the EU economy showing signs of a slow down since they have stopped QE purchases.
Moving onto economic data releases, the main day of focus this week will be Friday when the UK will be releasing trade balance figures, industrial & manufacturing production numbers alongside GDP data. So far these numbers for the UK have been strong, and I do expect this to continue, however, if these figures do come in weaker then the Pound could fall again as the only thing keeping the Pound strong at the moment is economic figures.
In regards to a Brexit deal, who knows if we’ll get one this month- it is impossible to predict, all we can do is deal with the aftermath of a deal/no deal situation. The GBPEUR rate is sitting between 1.11-1.14 currently, which are the ideal places to set budgets on exchange rates. The GBPUSD exchange rate is a little more difficult as the Dollar is so strong, but anytime the rate is above 1.30 is a good buy area psychologically.