Pound rocked by Brexit chaos

2018/11/23 12:21:18 Written by Canarian Weekly Business
STAYING on top of the latest currency news can help you time your transfers more effectively, so find out what you should be looking out for, over the next couple of weeks. Brexit has continued to dominate currency markets in recent weeks, with fears of a no-deal scenario leading to some notable volatility in the pound. This resulted in GBP/EUR briefly jumping from 1.13 euros to 1.15, before closing at 1.12, while EUR/GBP climbed from £0.87 to £0.88. Meanwhile, GBP/USD traded in a range of $1.31 and $1.28, with EUR/USD creeping up from $1.13 to $1.14. The pound has seen some significant volatility so far in November, with sterling suffering some particularly-dramatic losses last week, as criticism of a draft Brexit agreement with the EU led to the resignation of two senior Cabinet members, and attempts to force a no-confidence vote in Theresa May. Political uncertainty has also had a significant impact on the euro this month, with both Brexit and Italy budget concerns denting EUR sentiment. Meanwhile, outside of a small setback, because of the US, mid-term elections, the US dollar has remained buoyant over the past couple of weeks, as demand was bolstered by nervous GBP and EUR investors. GBP investors are likely to remain laser-focused on UK politics, in the coming weeks, as May's premiership remains in the balance, and the draft Brexit deal is put before Parliament, with further losses in the pound likely, if events increase the risk of a no-deal Brexit. Meanwhile, the euro is likely to remain sensitive to any news regarding Italy, as markets wait for the European Commission's response to Rome's decision to defy EU, fiscal regulations. Finally, the US dollar looks set to continue to appreciate, as safe-haven demand likely remains elevated by European political uncertainty, and renewed, US-China trade tensions. At Currencies Direct, we're here to talk currency whenever you need us, so get in touch if you want to know more about the latest news, or how it could impact your currency transfers. Since 1996, we've helped more than 210,000 customers with their currency transfers. Just pop into your local Currencies Direct branch, or give us a call to find out more. T: +34 922 971 781 E: canaries@currenciesdirect.com W: currenciesdirect.com