In the upcoming weeks, clients that are converting pounds into a foreign currency or a foreign currency into pounds should expect major volatility and substantial currency fluctuations.
Friday evening head EU negotiator Michel Barnier set a two week deadline for the UK. He stated the UK need to clarify key issues or make concessions if progression is to be made before the EU council next month.
The issues that need resolving are EU citizens’ rights, the Irish border, and the UK’s “divorce bill”. Both parties are hoping to have these key issues resolved sooner rather than later so the important trade negotiations can begin.
My personal opinion is that sterling could rise or fall by approximately 5% in the upcoming weeks off the back of news that the UK will or will not start trade negotiations. The question is will the UK and EU come to an agreement?
It appears that the UK have given up ground on some key issues, for example originally David Davis stated the UK wouldn’t pay a penny to the EU and now Theresa May is suggesting the UK could be paying €38n as a Brexit divorce bill. With the UK appearing to give in to some of the demands of the EU I think trade negotiations are going to start sooner rather than later and therefore the pound could receive a strong boost.
For people that are a buying the pound with a foreign currency you are still receiving what I like to call ‘ the Brexit discount’. For example a €200,000 transfer into sterling now compared to pre Brexit generates my clients £25,000. If I was in the position that I was holding onto euros I would sell them as soon as I could and remove the risk.
If you are reading this website in order to find out information in regards to buying or selling the pound, I can help you achieve the best possible exchange rates whilst keeping you up to date with regular economic information. Common clients I deal with are business owners, high net individuals and people buying property abroad.
Its important to analyse both currencies that you will be trading therefore I would recommend emailing me with the currency pair (GBPUSD, GBPAUD, GBPCHF etc) the reason for your trade (company invoice, buying a property) and I will email you with my forecast and the process of using our company firstname.lastname@example.org.
** IF YOU ARE ALREADY USING A BROKERAGE IT WILL TAKE TWO MINUTES TO EMAIL FOR A COMPARISON AND I AM CONFIDENT I WILL BEAT ANY PRICE YOU ARE CURRENTLY RECEIVING **