Pound Sterling exchange rates hit a 3-month high against the Euro last week following positive remarks from the UK & EU in regard to a potential Brexit deal and the Irish border. Jean-Claude Juncker also commented on Saturday by saying that it is very likely that a deal will be reached by the end of 2018 - which is positive for the Pound.
Now for those of you who have been following the Brexit situation- this isn’t the first time we have heard positive news, so it is always worth banking some gains on the market when we see them- I personally think that a deal should be made by the end of this year as a no deal situation poses problems for both sides- however, nothing is ever guaranteed!
I must now point out that if a deal is reached over the coming weeks/months then we are expecting the Pound to make gains, so if you are waiting to sell Sterling to purchase Euros or Dollars, it may now be worth looking at locking in a position in case a deal was to go through and the markets react positively to it.
In regards to Economic data, there are some important releases for the UK on Wednesday as we have trade balance, GDP, industrial production and manufacturing data all to be released at 09:30. UK data has been positive over the last couple of months and there isn’t much concern about these figures- however, nothing is ever certain so it is always worth hedging yourself for these releases just in case UK data misses expectation.
E: manish.gokani@currencies4you.com
W: https://www.currencies4you.com/4-you/
