Foreign Exchange Daily Market Update 31/01/2018

Wed, January 31, 2018

Sterling record new-year gains has masked over Brexit concerns

Sterling strongest start to a year on record has the bears running for cover.

The pound climbed 4.5% against the USD in January, its best run in the first month of a year since 1971, and 1.1 % against the Euro.

Sterling hit levels against the dollar last week to levels unseen since the UK referendum in June 2016 to leave the EU. A combination of optimism about a smoother Brexit and weaker dollar.  The Pound has steadily been rising since September, reaching the highest since 2014 last week.

The market’s focus has moved onto the transition period, so the downside didn’t materialize.  hopes for a grace period after the U.K.’s official exit, to smooth the separation and help businesses prepare to trade under a new establishment.  

yearend prediction where raised to 1.49 against the dollar rising to 1.52 come 2019, however some are expecting it to push past 1.50 mark by the end of the year. The pound traded at $1.4125 at yesterday evening, after reaching as high as $1.4345 on Jan. 25. Sterling traded at 1.402 against the euro.  

Data to look out today.   

19:00 USD rate decision.  

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PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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