My forecast over the next month is for volatility and fluctuation for the pound, opposed to a clear trend of strength or weakness. I would expect to see a maximum swing of 3% for the pound against the major currencies such as the USD, EUR and JPY, as the markets try to second guess the outcome of the General Election.
Labour released the details of their manifesto yesterday and we have the Conservative release today. In my opinion the manifestos themselves are unlikely to cause any huge market movement, but the subsequent jostling for leadership in the polls really could cause some big market volatility. Last week, as the conservatives took a more commanding lead in the polls, sterling gained 2.6% against the Euro. That’s and extra €4,350 on a conversion of £150,000. This illustrates the importance of staying in close contact with a currency specialist. At Foreign Currency Direct you will have your own dedicated account manager who can let you know if any spikes do occur.