With Article 50 due to be triggered tomorrow it is important that you are prepared for what could happen to Pound exchange rates once Theresa May has confirmed that we will be officially leaving the European Union.
Some have suggested that exchange rates have priced in with this announcement but personally speaking I think there is a risk to the value of Sterling as once the trigger has been pulled there is no going back.
Concerning the upcoming negotiations with 27 member states who remain in the EU I think they will make negotiations difficult and protracted and therefore I think this could cause a problem for the Pound.
The accompanying statement by Prime Minister Theresa May will be looked at extremely closely for the tone and this is likely to cause big swings on the foreign exchange markets as traders will be moving on every word.
We have seen the Pound improve recently against a number of commodity based currencies including the Australian Dollar, Canadian Dollar and South African Rand as prices in commodities have started to slowdown. However, this is not based on Sterling strength but merely the other currencies weakening.
Once we get past Article 50 the next big data release comes on Friday when UK GDP data is published. The expectation for the final quarter is for 0.7% so anything different could cause volatility for the Pound. Indeed, if GDP is revised down this could see Sterling exchange rates potentially fall against all major currencies.
Having worked in the industry since 2003 for one of the UK’s leading currency brokers I am confident that not only can I save you money when buying or selling currency but also help you with the timing of your transfer of funds.
If you would like further information or a free quote then contact me directly and I look forward to hearing from you.
Tom Holian email@example.com