The Pound is looking even more range bound as we remain uncertain about the future outcome of Brexit. The future strength or weakness of Sterling is very much linked to the future outcome from Brexit, overall expectations on the final deal from Brexit are taking time to finalise but thankfully we do seem to be getting ever closer to understanding at least the ultimate direction.
It appears that we will be looking at more of a softer Brexit which will see the Pound rise if and when it happens since it means less disruption to the UK economy. Last year the prospect of a harder Brexit saw the Pound lose lots of value, the market is now pricing in the higher chance of a softer Brexit which has helped Sterling to rise and removes the possibility, I feel, of the Pound dramatically plunging. The withdrawal agreement in December has allowed this to progress so far, the EU Summit later this month will be very interesting to determine where we are headed next for Sterling.
Thankfully we should get lots more news on what Brexit means in the next week as the EU Summit scheduled for the 22-23rd March becomes a more important event.
If you need to look at the Pound next week the UK Budget Report due on Tuesday from Philip Hammond could be important, but there is not a huge amount of economic data out unfortunately. Therefore, the Pound will likely be swayed by Brexit news and rumours or speculation about what to expect from the EU Summit the following week.
Sterling exchange rates seem likely to remain range bound and next week might not be the week where we see it break out. However, sooner or later the Pound will break free of these ranges so planning a transfer around such outcomes seems the sensible move.