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BREXIT DELAY: impacts on the pound continues

Staying on top of the latest currency news can help you time your transfers more effectively. Jose Almeida explains what you should look out for in the next few weeks…

THE BREXIT DELAY FAILS TO REVERSE THE POUND’S LOSSES The pound continued to give up ground in the past couple of weeks, with another delay to Brexit failing to energise Sterling due to concerns over prolonged uncertainty. This has seen GBP/EUR slip from ¤1.16 to ¤1.15, and pushed EUR/GBP up nearer to £0.87.

Meanwhile, GBP/USD fell back from $1.30 to $1.29, while EUR/USD was left at around $1.12, despite briefly reaching $1.13.

WHAT’S BEEN HAPPENING? While the UK may have avoided a no-deal Brexit last month, the prospect of another six months of uncertainty and some mixed UK data has left the pound on the defensive.

Meanwhile, trade in the euro has been mixed in the past couple of weeks, with the single currency relinquishing its initial gains after some gloomy Eurozone PMI figures stoked fears the bloc could face a recession this year. At the same time, after initially being clipped by improved risk appetite, the US dollar leapt back to life in mid-April on the back of some robust US economic data.

WHAT DO YOU NEED TO LOOK OUT FOR? While Brexit will remain a priority for GBP investors, expect to see Sterling increasingly influenced by UK economic data in the coming weeks as the immediate threat of the UK crashing out of the UK fades.

In addition to the latest Eurozone data, the euro is likely to become increasing politically sensitive as we near the European elections. Finally, the outlook for the US dollar will likely depend on the outcome of US-China trade talks, with USD likely

to relinquish ground again if it looks likely the two powers are able to finalise a deal.

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