GBP/USD rates spike back through 1.30 as a Brexit deal is on the horizon

The Pound has made gains of over a cent against the Dollar in trading so far today, the majority of the morning has been flat but news just out that EU Chief Negotiator Michel Barnier has just commented that a Brexit deal may be likely within 6-8 weeks. Any news on Brexit seems to be moving Sterling exchange rates quite considerably recently so this news has led to another spike in the value of the Pound.

We have a fairly busy week ahead for U.K economic data and on top of this the Pound is extremely sensitive to Brexit news either positive or negative as we have witnessed over the past few weeks.

U.K economic data has been reasonably positive in recent times and with plenty of economic data out from the U.K this week for the market to get its teeth into this could be a good week for the Pound.

Tomorrow morning we have the release of U.K unemployment data which has been exceedingly positive in recent times, with the unemployment figure being at its lowest since 1975, expectations are for unemployment to remain at 4% and for average earnings to have crept up a little to 2.8% from 2.7% which would be good news.

On Thursday we also have the Bank of England interest rate decision, meeting minutes and monetary policy statement, there no expectations of any change to interest rates this time around but the minutes from the meeting and monetary policy statement will be looked at closely.

U.S inflation is also due out on Thursday afternoon and with expectation of a slight drop off in inflation we could be set for a busy afternoon for GBP/USD exchange rates.

My personal opinion is that with the news from Barnier heard earlier today the Pound should have a strong week, so if you have Dollars to buy this will be a market to watch fairly closely.

If you have a Dollar transaction to carry out in the coming days, weeks or months ahead then it is well worth getting in contact with us here at Pound Sterling Forecast as we can provide market information so you can make an informed decision on when to trade, to try and maximise on your return. You can email me directly on [email protected] and I will be happy to contact you personally.

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