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What impact could the Budget have on Sterling exchange rates? (Tom Holian)
Sterling Euro exchange rates have continued to struggle this week with the UK Budget set to be announced tomorrow.
It appears as though the money that would usually be allocated is being held back to pay for the potential Brexit negotiations and as yet it is not clear how much that cost will actually be to the UK.
However, the expectation is that we’ll see an increase to the UK’s growth forecast from 1.4% to 2% this year and if this is the case we could see a small upturn for Sterling.
If we look at how Sterling performed this time last year when the previous Budget was announced the value of Sterling fell against both the Euro and the US Dollar highlighting the importance of timing when to buy your currency.
Eurozone GDP data is due to set the tone for the day with the release at 10am this morning. The expectation for year on year is 1.7% so anything different is likely to cause some big swings for Sterling vs Euro rates this morning.
The potential biggest day this week in terms of economic data comes on Thursday with the eagerly anticipated release of the latest European Central Bank’s decision on interest rates. I don’t think we’ll see any change to policy this month but the accompanying statement could provide some further movement for Sterling vs the Euro.
With the UK’s future still massively uncertain owing to the problems caused by what is happening with Article 50 and still no formal date announced this is likely to continue to cause problems for Sterling in the short term.
Therefore, if you’re buying Euros it may be worth organising this in the near future before the uncertainty of what may happen once Article 50 is formally triggered.
Having worked in the foreign exchange industry since 2003 I am confident of not only being able to offer you bank beating exchange rates but also help you with the timing of your transfer.
If you would like further information or simply a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]
Source: http://www.poundsterlingforecast.com/2017/03/07/what-impact-could-the-budget-have-on-sterling-exchange-rates-tom-holian/
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