Sterling’s performance through today’s trading session has been mixed as the currency is currently performing well against some of the major currencies yet down against others.
This is quite unusual during the current market conditions, as the Pound is being driven by sentiment driven due to the Brexit process constantly hitting the headlines and the UK economy performing surprisingly well. For these reasons we’re used to seeing the Pound develop a general trend during each trading day which has resulted in some big price moves since the Brexit vote last summer.
Today’s mixed performance has offered little in the way of obvious trends, but I do personally feel like the Pound will begin to recover versus the US Dollar specifically from it’s current levels for a number of reasons. Not only is the GBP/USD pair close to a 3-decade low after such a steep fall (meaning there could be scope for a re-bound), Donald Trump has also made it clear that he would prefer a weaker Dollar and I think he may attempt to weaken it in future.
The Pound’s relationship with the Euro is more complicated. Sterling could come under pressure as the UK formally begins the Brexit process, yet the Eurozone is facing issues of it’s own such as the increasing popularity of populist political parties which could push for the breakup of the EU. There are some key elections this year which could really impact the Euro so I think keeping a close eye onto how things unravel could be key for those planning on making a currency conversion involving the pair. This is also where we can be of use to our clients.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on email@example.com in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.
You can also call in to discuss your plans with me directly by dialing 01494 787 478 and asking reception for Joe.