Renewed risks of no-deal Brexit weakens sterling

2019/02/15 11:49:25 Written by Canarian Weekly Business
AFTER soaring at the start of the year, the pound found itself in reverse gear, over the past couple of weeks, on the back of renewed Brexit uncertainty. This has seen GBP/EUR retreat from a 19-month high of  €1.15 to €1.14, allowing EUR/GBP to rebound from £0.86 to £0.87. Meanwhile, GBP/USD has tumbled from $1.32 to $1.39, while EUR/USD slipped from $1.14 to $1.13. The pound has found itself in a tailspin, over the past couple of weeks, with sterling's appeal being eroded by heightened Brexit uncertainty, as well as some lacklustre PMI figures. The euro has also had a bit of a rough time in recent weeks, with the single currency being softened by concerns over growth in the Eurozone, amid signs that parts of the bloc are stagnating. Meanwhile, a dovish policy meeting from the Federal Reserve undermined the US dollar at the start of February, limiting the gains from some robust payroll figures, at the start of 2019. The pound looks set to become increasingly volatile, over the next couple of weeks, as the uncertainty surrounding Brexit looks to become increasingly damaging for sterling, the closer we get to the UK's exit date of 29 March. In the meantime, the focus for EUR investors will be the release of Germany's latest GDP figures, as they learn whether, or not, the country fell into a recession, at the end of 2018. Finally, the US is likely to face another government shutdown in February, potentially limiting the appeal of the US dollar going forward. 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 250,000 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