Sterling rallied during yesterday afternoon trading, having suffered some heavy losses earlier in the day.
With the markets very flat during early morning trading today, investors will be trying to predict its next move as Brexit negotiations continue to rumble on.
The Pound once again faced a major sell-off early yesterday, which was likely linked to the latest report regarding Brexit negotiations. Despite the undertone being fairly positive in terms of the on-going hope that both sides could reach a deal before long, talks were broken off due to disagreements over a number of key issues.
The DUP party, who the government rely upon due to their coalition agreement, have stated that they will not sign off on any deal regarding Brexit unless Northern Ireland’s terms are mirrored exactly to those of the UK.
This is causing problems over an agreement regarding the Irish border, with the government angling for a softer Brexit for Northern Ireland, in order to keep a fairly relaxed border between them and Southern Ireland.
This halt in proceedings has caused some investors to panic, which in turn has caused the Pound’s value to drop.
Sterling’s recovery following this is certainly a positive, in terms of it gaining an overall foothold in the market. However, any aggressive spikes against either the EUR or USD (our two most trade currencies) seems unlikely whilst the negative market perception around the UK remains.
With so many unanswered questions surrounding Brexit, in terms of when we will move on to the next phase and what type of concession this may incur, and my opinion is to avoid gambling on the current market. We have no idea what sort of trade deal the UK can agree with the EU and how the UK economy may progress over the years, in what is completely new and unchartered territory.
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.
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