The pound has been struggling lately with fresh concerns over the latest Brexit new and the future effects on the UK economy in the future. Article 50 is now only a few days away from being triggered with the new expected towards the end of the month. I cannot see how this will leave the pound unscathed and expect a volatile few days and weeks as news breaks through. The prospect of another Scottish Referendum, the US Interest rate decision and the Bank of England Interest rate decision are just some of the upcoming events to move the pound?
Once Article 50 is triggered it then means that there is likely no going back and it actually opens the door to a whole new set of questions. What kind of deal will the UK get? Will certain areas have access to the single market or not? Will certain countries look less favourably on the UK? Don’t forget the UK doesn’t get much of a say in the deal it gets offered. Yes Theresa May has said she will walk away from a deal if it not in the UK’s interests but that opens up even greater problems and questions for the UK!
Higher or Lower?
Unfortunately for all of us, exchange rates do not move in a straight line. When monitoring the rates we need to keep in mind the propensity for the unexpected but also take stock of reality. Article 50 will likely be triggered in the back end of this month and the likelihood is that this will lead to the pound falling in value. Some commentators believe it will cause sterling to rise but I think this is misguided.
The pound is likely to struggle to maintain too much form against many of the major currencies and with so much volatility I think a Limit order is a very good move. This automatic order placed into the market will trigger automatically once the rate gets to a level you have indicated as an ideal level.
The pound is about to experience some significant volatility as we get news on the Article 50 and Brexit deals. This is all unprecedented territory and the reaction for sterling not clear. If you are looking for further information we offer a personal, friendly and experienced hand to guide you through this volatility with a focus on the best exchange rate and the most up to date information.
For more information on what happens next for the pound and to keep up to date with the latest news please speak to me Jonathan by emailing email@example.com.