Staying on top of the latest currency news can help you time your transfers more effectively, so find out what you should be looking out for over the next couple of weeks…
In the last planned budget before the Brexit due date, Chancellor Phillip Hammond insisted that “austerity is coming to an end but discipline will remain”.
Choosing to spend rather than save last year’s unexpectedly high tax revenue, he pledged to increase public spending without the usual tax hikes, claiming that 32 million people would enjoy tax cuts.
So was there anything that will particularly affect expatriates?
No matter how you feel about Brexit, now that we are only months away from the due date, expatriates need to prepare in a practical sense. Although there are still many unanswered questions about what Brexit will actually mean, there are steps you can take to make your financial position in Portugal as secure as possible.
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.
The pound punched higher against the majority of its peers yesterday, with the currency buoyed by reports Ireland would back the UK’s plans for a post-Brexit customs union with the EU.
Sterling looks to extend these gains this morning, with GBP/EUR climbing to €1.1344, GBP/USD edging up to $1.3048, and GBP/CAD ticking up to C$1.6876, while GBP/AUD and GBP/NZD have both struck post-referendum highs this morning, hitting $1.8498 and NZ$2.0202 respectively.
Today’s session is likely to see the spotlight firmly on the US dollar as markets brace for the release of the latest US payrolls figures.
The pound fell back on Friday, with the currency being shunned by markets as the UK’s first quarter growth was unexpectedly revised lower.
Sterling appears buoyant at the start of this week’s session however, with GBP/EUR climbing to €1.1251 and GBP/USD steady at $1.3034, while both GBP/AUD and GBP/NZD edge higher, striking AU$1.8074 and NZ$1.9719 respectively. Only GBP/CAD is showing any signs of weakness this morning, with the pairing sliding to C$1.6726 after Canada and the US signed a ‘new version’ of NAFTA.
Looking ahead, the pound may extend its losses this morning as investors brace for another fall in the UK’s manufacturing PMI.
The pound trended higher against the euro yesterday as the single currency was pressured by reports that Italy’s next budget could be delayed.
Meanwhile Sterling is trading in a narrow range this morning, with GBP/EUR stable at €1.1246, GBP/USD flat at $1.3067 and GBP/CAD muted at C$1.7007, while both GBP/AUD and GBP/NZD hold steady at AU$1.8111 and NZ$1.9780 respectively.
Looking ahead, the euro will remain in focus this morning, with the publication of the Eurozone’s latest CPI figures.
The pound plummeted against all of its major peers on Friday, with markets fearing a no-deal Brexit may still be on the cards following a defiant speech by Theresa May in the wake of a disastrous Salzburg summit.
Sterling looks set to bounce back at the start of this week’s session however, with GBP/EUR climbing to €1.1159, GBP/USD advancing to $1.3112 and GBP/CAD rising to C$1.6962, while both GBP/AUD and GBP/NZD are surging, striking AU$1.8039 and NZ$1.9668 respectively.
Looking ahead Brexit is likely to continue to dominate market sentiment this week, with investors bracing for further volatility in the pound.
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