Sterling to finish May strongly?
Hi everyone,
Not much to talk about this month as the Pound slowly takes the road to recovery and Brexit talks go relatively quiet for now.
With the recent poor data, Sterling is finding it hard to both push and keep above the 1.15 mark just now. The current rate is pretty much where we were this time last year and is still comfortably above the average for the year, so good levels to be buying at. Next week there is plenty of UK data that could provide Sterling strength and the consensus is that the € is ‘there for the taking’ short term. Italian politics is creating uncertainty in the Euro and President Draghi recently commented that he is seeing ‘increasing political fragmentation’ in the Eurozone, therefore € weakness.
£-$ has seen an enormous 8 cent negative movement in just one month, a major blow (however unexpected) for many corporates that didn’t forward buy last month or before at 1.40+. 1.35 seems to be a major resistance level here and so I would expect fortunes to start changing soon for this pair.
Best regards,
Dan
