So we are now approaching one of the key moments so far this year for Sterling exchange rates, Article 50 is due to be triggered on Wednesday.
many had predicted that this would lead to a huge drop in the vale of Sterling but so far so good for the Pound this week. Sterling has hit a 7 week high against the Dollar, risen against the Euro and hit the best rates against a number of currencies that we have seen since the turn of the year, most notably the Australian Dollar, New Zealand Dollar, Canadian Dollar and South African Rand.
For anyone wanting to buy foreign currency with Sterling, this will be a welcome piece of good news in which has been a year once again filled with doom and gloom. In a report that I read today, it suggested that a number of economists (whom I personally agree with) now feel that the Pound is undervalued, potentially by as much as 20%.
Markets appear to have priced in a turbulent time and are almost expecting the worst, but I feel that any good news has the potential to see Sterling have a huge and rapid lift up against every currency out there.
On Wednesday the markets will not only be concentrating on Article 50 being triggered but will have one eye on how the U.K plans to actually go about its divorce negotiations, and the rates of exchange will no doubt be hanging off of every word that leaves Theresa May’s mouth.
If she delivers a strong speech, such as the one we saw on January 17th at Lancaster house then we could see the same result as we had on that day – Sterling strength.
Of course we still need to treat Article 50 as a potential banana skin for the Pound but in my view the certainty that we will have that it is actually going ahead will be enough to give the Pound a lift.
If you have a large currency exchange to carry out either this week or any time in the future and you would like assistance from a proactive and knowledgeable currency broker then you are more than welcome to get in touch with me directly. I have been assisting clients with their exchanges for 10 years and not only achieve them highly competitive rates of exchange but also ensure that their transactions run smoothly and efficiently.
if you feel I could be of assistance to you then feel free to contact me (Daniel Wright) directly on email@example.com and i will be more than happy to contact you personally and discuss the various options available to you in what may be a testing time for exchange rates.