Over the last 48 hours the pound has made considerable gains against all of the G10 currencies as the Brexit divorce settlement bill has made headline news. Reports are suggesting that UK Prime Minister Theresa May has offered €50bn, however this figure could increase to €80bn if certain liabilities need paying.
A client that is selling a property in France and completes next week, asked me yesterday how comes the pound is gaining momentum, surely if we have to pay this large amount of euros the pound should get weaker? Unfortunately for her, this is not the case. By agreeing a divorce settlement bill it means that the UK are one step closer to negotiating trade and trade negotiations will drive sterling exchange rates going forward.
In recent weeks I have been stating that I thought it was a matter of time until sterling exchange started to recover as a deal with the EU, I believed was likely. Many new clients have got in touch over the last 30 days and have taken advantage of the fantastic exchange rates that we can offer, for buying sterling.
Looking further ahead the EU leaders are set to meet at the EU commission on the 14th and 15th December. At this meeting there is set to be a vote to decide whether trade negotiations will begin in the new year. With the EU welcoming the divorce bill and UK Prime Minister Theresa May hinting that the EU citizens rights deal is nearly there, the only potential stumbling block is the Irish border.
Personally I expect the EU commission to announce that trade negotiations will begin in January which is fantastic news for any client buying a foreign currency but bad news for clients purchasing the pound. I would strongly recommend if you are purchasing sterling in the upcoming weeks that you get in touch to discuss your options. We have a contract options available to us which allows clients to secure rates now and pay later.
If you are reading this website in order to find out information in regards to buying or selling the pound I can help you achieve the best exchange rates on the market whilst keeping you up to date with economic information.
It’s also important to analyse both currencies that you will be trading, therefore I would recommend emailing me with the currency pair (GBPUSD, GBPAUD, GBPCHF etc) the reason for your transfer (company invoice, buying a property) and I will email you with my forecast and the process of using our company firstname.lastname@example.org.
** IF YOU ARE ALREADY USING A BROKERAGE TO BUY YOUR CURRENCY IT WILL TAKE TWO MINUTES TO EMAIL FOR A COMPARISON AND I AM CONFIDENT I WILL BEAT ANY PRICE YOU ARE CURRENTLY RECEIVING **