Sterling has found some much needed market support over recent days and the current trend continued during Wednesday trading, with GBP/EUR & GBP/USD rates improving.
The Pound spiked by over a cent against its EUR counterpart, following worse than expected Unemployment data from the Eurozone. The official figure of 10.1% immediately caused a EUR sell off, which inadvertently boosted Sterling’s value. With reports also surfacing this morning that UK Prime Minister Theresa May is chairing a Brexit brainstorming meeting at Chequers, we may find that developments surrounding our Brexit move forward quicker than many first thought. Whilst it is possible that article 50 will not be triggered for another two years or more, any solid indications of how we will facilitate it and the likely time-frame, should help to alleviate some of the current pressure on Sterling moving forward.
I still feel it is unlikely that the Pound will gain any major ground under current market conditions but we may now see GBP finding some sort of foothold after weeks of negative downturns. Personally I would be keen to protect my current position and not gamble on such an uncertain and volatile market.
There is no quick fix and it likely that the Pound will hit some type of glass ceiling for months and possibly years to come. Any clients holding out for GBP/EUR rates to recover above 1.30 and GBP/USD to hit 1.40 again this year are likely to be left disappointed.
If you have an upcoming Sterling currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on email@example.com