The pound has taken a sizeable fall across the board this afternoon with losses in excess of 0.5% against both the Euro and US dollar. The Brexit bill has gone through the House of Lords today and an amendment on the rights of EU nationals living in the UK is likely to be requested. There appears to be a strong chance that this will happen when the Lords vote, something that is taking place right now. Any delay for Brexit from here on is likely to weigh heavy on the price of sterling and there is likely to be considerably more from this story as it unfolds.
Those clients holding sterling who are looking to buy Euros in particular would be wise to get in touch as Article 50 is almost certainly going to be invoked this month. With this carries a huge amount of uncertainty and the fact that it has never been done before should see the pound struggle to make any good gains. In fact in my view the risk to the downside is considerably greater and this applies to sterling exchange rates across the board.
Despite a better start to the day with strong manufacturing numbers from the Purchasing Managers Index it is clear that the politics of Brexit still continue to be the main driving force for the pound.
Tomorrow sees UK construction data which is again from the Purchasing Managers Index whilst the services sector will be released on Friday. Euro inflation data is also released tomorrow which could give some clues as to where the European economy is heading.
However the outcome in the House of Lords this evening will be the talking point for the pound and should give new direction according to the result. For those clients selling Euros there are likely to be some excellent opportunities to convert as the Brexit takes new twists and turns.
If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist 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