Sterling has come under pressure this week following comments made over the weekend by UK Prime Minister Theresa May, regarding how she wished the UK to facilitate our exit from the EU.
She stated the UK would look towards a “hard Brexit”, which ultimately means that we will be cutting nearly all ties with the EU. This has caused investors to panic and the markets have reacted accordingly, with the recent loses against all the major currencies a result of this.
Despite these obvious fears May also mentioned she wanted the best deal for the UK in terms of leaving the EU but stated that we will not be keeping part membership and we were going to break off completely. This means that trade deals and immigration rights will need to be renegotiated and this causes a huge amount of market uncertainty.
Market uncertainty is a currencies killer and this is why the Pound is fighting an uphill battle. Talk of Brexit and how we will facilitate this is likely to drive investor confidence and in turn the Pound’s value for months if not years to come.
These comments were clouded somewhat by UK Chancellor Philip Hammond who admitted no decision had yet been made as to whether the UK would stay in the single market post Brexit. It may be that the Prime Minister is trying to give herself a strong bargaining positon ahead of negotiations with the EU but wither way we just don’t have enough information to hand to make a firm decision either way.
I would not be gambling on the current market and with the UK economy so fragile in the minds of investors and GBP/EUR falling back below 1.15 at yesterday’s low, it may be time to secure your Sterling position and remove the uncertainty surrounding the whole debacle.
With the Supreme Court meeting again today we could get a decision regarding the triggering of Article 50 at any time, so it would be wise for anyone with a Sterling currency requirement to keep in close contact with their personal currency broker, to ensure any opportunities that arise are not missed.
If you have an upcoming Sterling currency exchange to make and you are looking for the best exchange rates available, then please feel free to contact us on 0044 1494 787 478 and ask one of the team for Matt.
We can provide key market information and analysis ahead of any transfer, whilst keeping you up to date with all the latest market movements. We help our client to time their exchange to maximise the market value available and have awards for our exchange rates and service.
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