Sterling is up on last week, the sun is shining and everyone in the UK is back from the May Bank holiday. The mystery and resolution of ‘Brexit’ is akin to the mystery of why the Kardashians are relevant. Who knows. Brexit will continue its domination of all things politics after the recent embarrassment for the major UK parties in local elections.

The macro calendar this week is extremely light so expect movements in currencies to be driven by commentary and political statements rather than any fundamental moves on data. We have industrial production data out of Germany/France/Italy and then the ECB President, Mario Draghi, speaking on Wednesday. From a UK perspective we have Preliminary GDP (QoQ) (Q1) on Friday.

Where is the next move on Cable (Sterling/Dollar)?

You can view the recent movements on GBP/USD on the graph below –

We have moved from around a little over 1.29 last week to open this morning at 1.3124. We have given up some of those gains and have traded back below 1.31 the figure . If you have a requirement to purchase USD from GBP I would consider locking in some of your exposure at current levels to take advantage of the recent moves. We would need to see a break through 1.3217 (25th January high) to open up any meaningful sustained move to the upside. Please contact our trading department for a rate of exchange on SPOT and to discuss technical levels around any take profit orders.

On Sterling/Euro we had been in a bit of a malaise recently and not really moving from the mid-1.15s. We had a nice spike higher on Friday as you can view on the graph below –


If you have requirements to purchase EUR from GBP consider taking advantage of the recent move higher. Please contact our trading department for a SPOT rate. EUR/USD has shifted back below 1.12 the figure so should we see a further fall then this may give Sterling/Euro some further impetus to move higher. Consider implementing a market order around 1.17 the figure should we see a sustained break higher on Sterling. Again, please contact our trading department to implement this.

As mentioned earlier, it’s a relatively quiet week on the currency markets although these things can change remarkably quickly. We might even see some progress on a Brexit deal this week!

If you have any questions please do let me know.

Have a great week.

Written by Liam Alexander