Those that have been watching Sterling exchange rates for the past year will be aware of the dramatic drop in the wake of the UK electorates Brexit vote last June.
What made that drop in the immediate aftermath of the vote so dramatic was the fact it came as a shock, with financial markets at the time having priced in a remain victory at the time. Moreover, the currency had already dropped in the lead up to the actual vote as at the beginning of 2016 and the end of 2015, the Pound was essentially overvalued which negatively impacted the UK economy.
Whilst I don’t expect Sterling to recover to the levels seen at the end of 2016, I wouldn’t rule out a longer term recovery from the Pound back to the levels seen just before the vote was announced but its fair to say there are a number of resistance levels currently standing in the way.
The Pound to Euro rate has bounced off of 1.20 on a number of occasions whereas cable (Pound to Dollar) has broken above 1.25 but its now struggling to breach 1.30.
In my opinion these levels are key for Sterling sellers, and basing trade levels off of these benchmarks is a sensible approach in my opinion as there’s an argument to suggest that these levels are the top of the Pounds current trend.
After slowing towards the end of last week and this morning the Pound was boosted after data released showed that the UK Manufacturing Sector is enjoying some of the best business conditions in years, which has actually been helped by the weaker Pound. Economic data is now playing a bigger role in the Pounds daily movements so it’s worth getting in touch if you wish to be kept updated regarding these updates.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on email@example.com and I will endeavour to get back to you as soon as I can.
You can also call in on 01494 787 478 if you wish to speak sooner. Just ask reception to speak with Joe.