Sterling has made a positive move against most of the major currencies over the past 48 hours, with significant gains against the EUR, USD & AUD.
This spike came in line with the US election results and Donald Trump’s victory over his Democratic rival Hilary Clinton. GBP/EUR jumped by over 3 cents since Wednesday, with a similar move against the USD and a 6 cent rise against the AUD.
Yesterday’s positive move has continued this morning and the Pound is benefiting from Trump’s victory, due to the fact we are now in line for a trade deal with the US, which goes against current President Barack Obama’s previous comments. He stated that the UK would be at the back of the queue for any trade deal but with Trump indicating a willingness to negotiate ahead of our Brexit, investors now have more confidence in the UK economy and the Pound is benefitting as a result.
Personally, I would still heed some caution as apparently UK Prime Minister Theresa May was the eight key figure head to receive a phone call from the President elect and considering we are meant to be their key economic and political ally, does this bode well for future negotiations?
I may reading too much into this but with the current concerns surrounding the UK economy next year, with high inflation likely and growth forecasts low, now could be the time to take advantage of the current spike and not gamble on our fragile economy.
GBP/EUR rates have hit a high of 1.1607 this morning, some of the best rates we’ve seen in the past few months. GBP/USD rates have spiked above 1.26, with GBP/AUD gaining further ground, hitting a high of 1.6639.
These rates will seem extremely attractive to investors and clients, who have had to sit back and watch the Pound’s value disintegrate over recent months. Personally, I would be extremely tempted to take advantage of this move for any short-term currency requirements, or even look to protect any longer-term positions by way of our forward contracts, which will protect you from any future negative market downturn.
If you have an upcoming Sterling currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.
If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on firstname.lastname@example.org