The pound could be in store for one of the most volatile days in recent weeks with a barrage of news and economic data. We start with Purchasing managers Index numbers at 09:30 for the services sector. This has the potential to be a big market mover as this sector represents a large share of UK Gross Domestic Product. A strong number which in my view is likely could lend support to the pound.
GBP Exchange Rates ahead of High Court Ruling
At 10am we have the announcement of the high court ruling on whether the government must consult parliament before invoking Article 50.
If the government lose this case then I would expect to see the pound strengthen on the back of it as it will be harder for the government to pursue what has been dubbed a “hard Brexit”. Of course the case could go either way but the implications are substantial not just for Brexit but for the British constitution as a whole.
The government feel confident that they will win the case however and the pound could come under a small amount of selling pressure if the case does go against Prime Minister Theresa May.
Mark Carney and Bank of England Meeting – 12pm – Sterling may Rally
As if this wasn’t enough for a day’s trading at 12pm today the Bank of England will announce the latest interest rate decision and Governor of the Bank of England Mark Carney will be speaking. Having being criticised for peddling some doom before the referendum vote I would expect to see a more upbeat and optimistic Governor from here on which should lend support for the pound. By doing so it would help to lift the pound and put some of these current inflation concerns to rest. Mark Carney is the master of steering the markets with his commentary and I would expect to see some upturn for the pound.
Expect a hugely interesting and volatile Thursday for sterling exchange rates across the board!
Clients who are holding sterling are seeing a very volatile period at the moment but there may be some light at the end of the tunnel. The Brexit jitters are keeping the pressure on the pound though. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com