The Pound has tumbled against the majority of major currency pairings today, a main factor in the fall is the news that TaTa Steel is selling off it’s UK assets including it’s Port Talbot plant. This could potentially mean 5000 job losses. It has caused key investors to lose faith in UK commodities which has in turn weakened Sterling. Today we have also seen a rise in Swiss retail sales figures and gains in the manufacturing sector adding the Pounds woe’s. The biggest contributor to the Pound’s drop however is the uncertainty surrounding the EU referendum. If the UK were to leave it would be catastrophic for the Pound, trade relations would be put under tremendous strain and I would expect a drop by up to 25 cents.
Many of my clients are taking advantage of forward contracts in an effort to avoid such a drop. If you would like to have more information regarding such a contract please do get in touch I will be happy to help with your trade. Feel free to e-mail me at [email protected].