If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Pound retreats in spite of support for Brexit delay

business-articlesPound retreats in spite of support for Brexit delay
  • Pound under pressure after Parliament votes to delay Brexit deadline
  • Weaker Eurozone inflation to weigh on euro
  • US dollar could extend gains on rising consumer confidence
 
Brexit delay fails to shore up pound
 
As Parliament voted in favour of seeking a delay to the Brexit deadline the pound struggled to return to a stronger footing.
 
Although markets greeted the prospect of the UK not crashing out of the EU at the end of March GBP exchange rates remained under pressure this morning.
 
Investors are wary of an extended period of Brexit-based uncertainty, given the negative impact that worries have already had on the UK economy.
 
The pound remains sensitive to any fresh Brexit developments in the near term, with GBP exchange rates likely to rally once again on any signs of positive progress.
 
 
Euro vulnerable ahead of Eurozone inflation data
 
The mood towards the euro could sour further this morning if February’s finalised Eurozone consumer price index falls short of forecasts.
 
After German’s inflation data was revised lower yesterday investors are wary of the prospect of the Eurozone figures following suit.
 
With inflation looking set to remain below the European Central Bank’s (ECB) 2% target rate, though, anything short of a significant upside surprise is unlikely to give EUR exchange rates a boost.
 
A weaker reading, though, would still give ECB policymakers incentive to leave interest rates on hold for longer.
 
 
Rising consumer confidence to encourage US dollar
 
This afternoon’s University of Michigan consumer sentiment index may offer a fresh boost to the US dollar, with forecasts pointing towards an uptick on the month.
 
If the index reverses some of January’s decline this could encourage USD exchange rates to extend their gains heading into the weekend.
 
As long as US consumers show signs of resilience the mood towards the US dollar is likely to remain positive.
 
Another dip in sentiment, on the other hand, could see USD exchange rates return to a downtrend once again as confidence in the economic outlook diminishes.
 
 
Upcoming Data:
 
Friday, 15th March 2019
10:00 EUR Eurozone Consumer Price Index
12:30 CAD Manufacturing Sales
14:00 USD University of Michigan Consumer Sentiment Index
 
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.