The Pound has once again remained in a tight range versus the single currency as the market is eagerly anticipating what Prime minister Theresa May might say later on this week.
Mrs May is due to speak on Friday to address the issue of what the UK will want in terms of Brexit and the plans involved. This is not the first time that she has given a public address on the topic but this week’s announcement could be crucial to what happens to Sterling over the next few days.
Last week Theresa May held a private cabinet meeting at Chequers with 11 senior MPs and the likelihood is that the tone of the speech will be rather bullish, and if it goes well we could expect Sterling exchange rates to end the week on a high against the Euro.
Events that could affect Euro exchange rates
Meanwhile turning the focus to Europe there are two key events happening over the next few days to affect the value of the Euro against the Pound.
The Italians are going to the polls and with a murmur of anti-EU sentiment from two of the parties involved this could cause a bit of volatility for the Euro. Also, the coalition issue involving Germany has still not been fully resolved so both events could cause the Euro to weaken against the Pound creating some good opportunities to buy Euros as we move into early March.
Eurozone Inflation is due in the morning and the expectation is for the figure to be 1.2% year on year, so anything different could cause some movement for GBP/EUR exchange rates as it will have a direct impact on what the European Central Bank (ECB) will do going forward in terms of monetary policy.
Currently the ECB are still adopting their Quantitative Easing (QE) programme of €30bn per month so make sure you keep a close eye out on the inflation data due out in the morning.