Today is the first day that Theresa May’s Conservative party will set out plans for the future after Brexit and how EU law will transpose into UK law. By all accounts these discussing will be heated and MPs from opposing parties will not agree with the Prime Ministers plan.
It is no surprise that the Labour party plan to block the ‘Great Repeal Bill’ however for the bill to be blocked, Conservative MPs will have to vote against the Conservative party, which in my eyes would put there career in jeopardy. It is more likely that the bill will go through and at a later date Conservative MPs will try to make amendments.
The discussions are set to go on for the next couple of days and voting should start early next week. In regards to sterling exchange rates I don’t expect this story to have a major impact on exchange rates and if anything I expect the gains the pound has made this week to be reversed.
It has been reported after the party conferences in October this will be the chance for Conservative MPs to go against Theresa May’s Government. MP’s will lay down 100s of amendments, however the amendments will come from a back bench politician alone and not the leader of the opposition Jeremy Corbyn.
Even though it looks like the pound will continue to remain under pressure its important when buying or selling the pound that you analyse the other currency that you will converting. If you have an upcoming currency transfer to make this week, month or year I would recommend emailing me with the currency pair (GBP/USD, GBP/EUR, GBP/AUD etc) and your individual requirement (buying a property abroad, paying a company invoice) and I will personally respond to you with my forecast and the process of using our company email@example.com.
For example if I were buying euros I would trade as soon as I could, as the ECB’s interest rate decision has the potential to push GBPEUR exchange rates back towards 1.06-1.07. Where as the US dollar continues to remain under pressure for a few reasons including a dovish Federal Reserve of late, therefore I would set up a limit order and try and purchase US dollars at a higher rate.
For people that are buying a foreign currency the pound has last approximately 15-18% in the last 16 months, therefore when you make the conversion it is essential that you get the best rates. If you have used a brokerage for many years or have been referred a brokerage I strongly recommend you compare rates to make sure you get the best price possible and therefore save money. This simple exercise takes two minutes and in the past I have saved clients hundreds and in some instances thousands of pounds.