What next for Brexit?
Headline Brexit news has and will continue to drive sterling exchange rates for the foreseeable future. Last week EU negotiator Michel Barnier announced Brexit negotiators had hit deadlock and sterling exchange rates plummeted. However that afternoon rumours emerged that regardless of Brexit negotiations hitting deadlock officials would meet to discuss what a future trade deal would look like when the UK departs in the years to come.
Know surprise, sterling exchange rates recovered and received a boost as investors moved back into the pound in anticipation that trade negotiations will start sooner than many thought. If you read my articles regularly for many months I have said that foreign currency sellers have time as it didn’t appear that progression was being made however with the news that EU officials could meet people that are buying sterling need to realise the fantastic exchange rates since the UK public voted out of the EU could diminish in the upcoming months
UK inflation to dictate UK interest rates and sterling exchange rates
Consumer Price Index also known as inflation is set to be released Tuesday morning and the market will be watching closely to see if inflation rises above 3%. The Bank of England have a 2% target and have therefore started over the last 8 weeks that interest rates could rise at the November 2nd meeting.
For foreign currency buyers, I am going against the grain as I think it’s very unlikely that the Bank of England will raise interest rates. Sterling was the best performing currency throughout September and gained between 4-6% against most of the major currencies. Consequently I expect inflation to remain at 2.9% which will give the Bank of England breathing space to at least the December meeting.
When converting currency it’s important to analyse the other currency that you will buying or selling. I would recommend emailing me with the currency pair (GBPEUR – GBPUSD – GBPAUD) and the reason for your currency transfer (company invoice – property purchase) and I will respond with my forecast and the process of using our company. My direct email address is email@example.com and I look forward to receiving your email.
The currency company I work for can achieve clients better rates of exchange than the client can with their own bank. Quite simply if a client approaches there bank wanting to convert £250,000 into a foreign currency, they will not achieve the rates we can, as we convert millions of units of currency on a daily basis, and the more currency you convert the better price you receive. If you would like to save money feel free to email me with your requirements or call the trading floor Monday morning on 0044 1494 787478 and ask for Dayle Littlejohn.