The Pound has continued to gain a fair amount of support during this week, cementing its solid start to 2018.
Sterling has gained a foothold against the EUR, hitting 1.1350 at this morning’s high. This positive spike has come, despite some recent impressive economic data for the Eurozone.
Its performance against the USD has been even more impressive, moving through 1.38 against the greenback. Whilst the Dollar is likely find plenty of support under and around 1.40, the fact this threshold is even being mentioned is a testament to how far Sterling has come over recent weeks.
The key question investors will now be asking themselves, is how much further can this positive move take it?
Personally, my opinion remained unchanged from recent months and that is we are working in a short-term opportunist market. Therefore, those clients holding the Pound should be keeping a close eye on the current developments and consider their position accordingly.
Looking ahead and Sterling’s value is likely to be driven by the markets sentiments surrounding Brexit. Negotiations have progressed and this in turn has allowed the Pound to gain some traction but it unlikely to be smooth sailing. Whilst any positive strides forward in this sphere are likely to benefit Sterling immensely, I feel any resolution in the short-term is highly unlikely.
It is far more conceivable that negotiation’s will continue to stagnate, as they did during the early stages, and this in turn is likely to handicap any sustainable increases for the Pound.
With the EUR continuing to outperform most of its major currency counterparts, I would not be backing any Sterling increase above 1.15 in the foreseeable future and with the US economy continuing to impress, despite the negative perception that surround President Donald Trump, it may be prudent to take advantage of the recent improvement and current highs.
If you have an upcoming Sterling currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on firstname.lastname@example.org to find out all the options available to you ahead of your currency transfer.