Sterling under pressure against Euro and US Dollar owing to Brexit fears (Tom Holian)

As the Brexit gathers pace and with just 8 days to go before the UK referendum takes place there are huge fears for Sterling if the Leave vote ends up winning.

Sterling exchange rates are already falling and against the Euro compared to just 2 weeks ago we have a seen a drop in the value on GBPEUR rates by 6 cents or the difference of £3,600 on a currency transfer of €100,000.

The odds have also massively fallen as a month ago the bookmakers had a Remain vote priced in at 5-1 on!

The recent opinion polls have shown that the Leave campaign is currently winning. The most up to date poll was published by TNS which polled 2,497 people online.

The findings were as follows Remain at 40%, Leave at 47% and undecided at 13%. There is clearly an increased appetite for the UK leaving the European Union and this is causing a big panic sell of Sterling.

The next week as the time ticks on and gets closer and closer I think we could see big falls for Sterling and if you look at what has happened to UK equities on the stock market this week I expect to see similar problems for the Pound in the week ahead.

Indeed the FTSE has fallen by 2% during yesterday’s trading session as fear is really starting to kick in.

Therefore, if you need to exchange Pounds into Euros or US Dollars or indeed any other major currency then it may be worth looking at organising this prior to the referendum vote.

There are a number of important economic data releases due in the next few days including UK unemployment this morning, Eurozone inflation data tomorrow and the Bank of England interest rate decision but overall it will be the Brexit vote next week that the markets will be most concerned about.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian