The financial headlines are mixed regarding the Pound at the moment, as Sterling is trading quite close to an 8-month low against the Euro whilst simultaneously hitting a 10-month high against the US Dollar.
The main news out of the UK today is likely to be the comments from Home Secretary Amber Rudd, after she said that she wants to ‘reassure businesses and EU nationals that we will ensure there is no ‘cliff edge’ once we leave the bloc.
The markets were buoyed off the back of these comments in what’s a light day for economic data, and the Pound has seen a boost against almost all major currency pairs.
With yesterday’s economic update on UK economic output delivering no surprises, the Pound to Euro exchange rate appears lodged around 1.12 at the moment at the inter-bank level. Hopes of an interest rate hike from the Bank of England appear to have all but faded now and I think this is reflected within the pounds value.
GBP strength or just USD weakness?
Whilst Sterling is benefiting from US Dollar weakness the Pound is finding itself trading towards the bottom of its post-Brexit trends against almost all other currency pairs, which gives us an insight into how the currency is performing in general.
There are no major economic updates out of the UK tomorrow, so those wanting to take advantage of any spikes within the exchange rate off the back of news releases will need to monitor the economic calendar in other areas of the world.
My personal opinion is that the on-going Brexit discussions will be a key factor for the pound moving forward, and there could be an unexpected update that swings rates but of course, it’s impossible to tell when this will occur.