The pound is still struggling under the weight of immense political uncertainty as we learn later today of the Queen’s speech where the new Government program will be laid out for all to see. But with Theresa May still struggling to secure the support of the DUP (Democratic Unionist Party) just how will the pound react? As if all of this wasn’t enough we also have the Brexit negotiations which have kicked off and so far the talks are ‘going well’ basically because the UK have agreeing to everything and not putting up much of a fight.
As if all of the political uncertainty wasn’t enough to give clients holding pounds the fear factor, Mark Carney yesterday ruled out any interest rate hikes, quashing expectations that saw the pound rise last Thursday.
Of course it isn’t all bad news, a ‘hard Brexit’ is looking less likely now which is mildly supportive for the pound since it reduces the chance of Britain crashing out of the EU with no deal. There is now a much greater push for access to the Single Market from business and also politicians like Philip Hammond. However with the UK economy starting to show signs of weakness from falling living standards the odds seems very much stacked against the pound in the coming months ahead.
With politics remaining the main driver the market will be reactive to the latest news and developments, well informed clients looking to sell the pound for a foreign currency, say for an overseas property purchase or to pay business Invoices, found their prices much better earlier in the week when the pound was almost 2 cents higher against the US dollar and 1.5 cents against the Euro.
Such small difference in the currency can make a massive difference on transfer amounts from £10,000 and over, every extra cent at current rates selling €200,000 is an extra £1500 in your pocket.
If you need to buy or sell the pound at present there are a whole host of important events pending which will influence the future levels. We offer a specialist service to help with the timing and planning of any exchanges that you will need to make, all the time I am asked about getting the ‘best rate’. Well I think it is achieved through lots of preparation and understanding of the market and your own position.
Given the high anticipation surrounding today’s speech we are expecting higher volatility than normal. You can contact me directly on 01494 787 478 and ask the reception team to be put through to Jonathan in order to have a plan of action in place and discuss a tailored strategy for you.
For more information at no cost or obligation on the best sterling exchange rates for larger international transfers, please feel free to contact myself Jonathan Watson by emailing firstname.lastname@example.org. I am an Associate Director for one of the UK’s largest currency brokerages and have worked for nearly ten years assisting both private and corporate clients in the planning and execution of their currency purchases.
Thank you for reading and I look forward to hearing from you.