What you need to know about Brexit and the impact of Brexit on exchange rates
Throughout 2016 ‘Brexit’ was the main talking point for sterling exchange rates and I expect this trend to continue for at least the next two quarters.
When the UK public voted out of the European Union the consensus was that the UK would also be leaving the single market.
However the High Court ruled UK Prime Minister Theresa May does not have the power to invoke Article50 and therefore leave the single market.
The Prime Minister disagreed with the High Court ruling and last month took her case to the Supreme Court in hope that the decision will be overturned. The verdict is set to be released some point this month.
It’s important to realise Brexit is complex, however if you are buying or selling pounds in the upcoming months we have seen trends over the last 7 months that should help your decision making.
When the UK voted out of the EU in June and as a country we were under the impression we would exit the single market GBPEUR and GBPUSD plummeted to lows of 1.10 and 1.2190.
As soon as the High Court ruled that an exit from the single market will occur once Theresa May has approval from Government (very unlikely this would materialise) GBPEUR and GBPUSD increased to highs of 1.2015 and 1.2750.
Looking ahead to the Supreme Court decision this month, I believe there are two outcomes to exchange rates once we hear the verdict.
If the Supreme Court rule in favour of the High Court an exit from the single market becomes unlikely and therefore the pound makes gains against all of the major currencies.
If the Supreme Court overturn the High Court an exit from the single market could occur as early as March and therefore the pound plummets to lows we saw only 3 months ago.
How can I help you?
The currency company I work for enables me to achieve clients rates of exchange that they won’t be able to achieve by using their own bank.
Property purchases and sales are my area of expertise, therefore if you need to purchase a foreign currency or you are about to complete on a sale abroad, today is the day to get in touch to discuss your options and to get an understanding of how we can save you as much money as possible.
When purchasing currency it’s crucial to analyse both the currencies you will be trading, as your 2nd currency will also have an impact on the pair.
Feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF etc) the reason for your conversion (company invoice, buying a property) and I will email you with my forecast for the currency pair and the process of using our company firstname.lastname@example.org.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **