Last week we witnessed tremendous gains for anyone holdings Sterling, with GBP/EUR, GBP/USD, and GBP/AUD, seeing upswings measured in whole cents, a rare phenomenon since the Referendum last June.
Frankly it has been a good two weeks as a whole, offsetting the steep drops in the Pound’s value which rang in the New Year.
Anyone with a buying Euro or Dollar requirement can lay their thanks at quite a few events, which explains why the momentum for the Pound is expected to continue for the final few days of the month.
A speech by Theresa May a few weeks ago now outlines a continued framework for Parliament to enforce a form of collective common sense towards the Brexit negotiations, and the Surpreme Court ruling on Tuesday last week established Parliament’s role right from the offset.
In summary market worries that this Brexit will be rapid, and conducted behind closed doors have been calmed. The undervalued Pound has therefore returned to something fairer to its true worth, reflected in the rise on GBP/EUR, GBP/USD, and GBP/AUD.
The next feature that currency markets must wait to digest is the meeting between Theresa May and Donald Trump late on Friday.
Trump’s ascenscion to the Presidency was key in November for the Pound’s surge away from the multi-year lows of October. His support for the Brexit cause and the counter-statement that the UK would be first in line for a trade-deal rather than Obama’s ‘back of the queue’ speech put the Pound back on the map for investors.
Initial comments from the meeting have been very positive, but markets have been closed for the weekend and are yet to react to the statement. As such Monday should provide some tempting rates to offset Friday’s dips (a result of profit-taking in the marketplace, rather than in reaction to any news).
However, beyond Tuesday, February will bring a new month with new economic data, and trends for GBP/EUR, GBP/USD and GBP/AUD will be unknown for the first few days as trends must be re-established.
Anyone with a foriengn currency selling requirement (to buy Sterling) now should seriously consider their options to protect an upcoming or future requirement.
Buyers will get a better idea of the long-term trends over the weekend, and if you contact me on firstname.lastname@example.org, I can email updated forecasts in relation to your particular situation at that time.
Furthermore, I have ever had an issue beating the rates of exchange on offer elsewhere, so a brief email exchange could save you thousands on a prospective currency exchange.