The latest comments from an EU official regarding Brexit weighed on the pound yesterday, with market confidence in the UK government’s ability to secure a beneficial deal once again dented
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Daily Market Analysis February 7th 2018 |
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Brexit woes push Pound Sterling lower as US rate hike bets climb The latest comments from an EU official regarding Brexit weighed on the pound yesterday, with market confidence in the UK government’s ability to secure a beneficial deal once again dented. The pound starts this morning on soft form. GBP/EUR is down -0.1% to €1.1263, while GBP/USD is down -0.2% to US$1.3936. GBP/AUD has climbed 0.2% to AU$1.7712, GBP/NZD is up 0.1% to NZ$1.9059, and GBP/CAD is flat at C$1.7448. Read on to discover what was said about Brexit this time that sent GBP sliding… |
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Today's Rate The rates above are using the British pound (GBP) as the base rate. All rates are for indication purposes only. Prices can vary dramatically based on amount and delivery date. |
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| | "The lack of clarity provided by the UK government has long caused concern on the markets, and Webber’s comments were another reminder that this issue has yet to be resolved." Transfer 24/7 with our currencies direct app |
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What’s been happening? Brexit concerns continued to weigh on the pound yesterday, after Manfred Weber claimed that MEPs still have no idea what the UK government was seeking from its Brexit arrangements. The lack of clarity provided by the UK government has long-caused concern on the markets, and Webber’s comments were another reminder that this issue has yet to be resolved. A large surge in German factory orders during December sent the GBP/EUR exchange rate lower yesterday, even though the latest Eurozone retail PMIs all registered notable falls. Factory orders increased by an impressive 3.8% month on month against forecasts growth of just 0.7%. GBP/USD tumbled as markets continued to bet that the Federal Reserve will raise interest rates next month and do so again later in the year. |
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What's coming up? There is nothing of note on UK data calendar again today, which means Brexit concerns are likely to continue weighing on GBP exchange rates. The euro could see volatility after the release of this morning’s European Commission Economic Forecasts; should the forecasts suggest that the Eurozone trend of robust growth is set to continue GBP/EUR would weaken further. The US dollar will be reacting to mortgage applications data and speeches from Federal Reserve officials Robert Kaplan, William Dudley, Charles Evans and John Williams throughout the session. Signs of confidence from US policymakers could boost the US dollar even higher. We’re here to talk currency whenever you need us, so get in touch if you want to know more about the latest news or how it could impact your currency transfers. |
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| Reaz Rahman
Senior Dealer Reaz, our Senior Currency Dealer, joined us in January 2015. Reaz draws on his detailed knowledge of the foreign exchange markets to help customers to choose the right service and time to transfer. |
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