The pound made fleeting gains on Thursday, driven by hopes for a solid economic rebound in the UK this year.
The EU’s decision to respond legally to the Internal Market Bill put renewed pressure on GBP exchange rates, with markets fearful of the impact on talks.
However, as the two sides ultimately agreed to extend discussions, this encouraged the pound to rebound amid renewed hopes of an agreement.
A positive revision to the finalised UK services PMI failed to offer the pound any particular rallying point this week, meanwhile, due to the revelation that the sector has experienced seven consecutive months of job cuts.
The threat of an impending wave of job losses looming over the UK economy could limit the potential for GBP exchange rate gains in the days ahead.
Friday’s raft of UK trade and production data may provoke another bout of volatility if the economy shows any signs of losing its initial run of recovery momentum.
Even so, a solid month of growth from August’s gross domestic product may encourage the pound to push higher against its rivals heading into the weekend.
At the same time, the pound will continue to remain sensitive to reports emerging from progress in Brexit negotiations and an agreement being reached between the UK and EU.
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)