Sterling Euro rates hit their lowest level since November 2013 earlier this week as the Brexit fallout has continued to weigh heavily on Sterling exchange rates.
Politically the UK is in a state of flux after the Brexit campaigners Boris Johnson and Nigel Farage both chose to resign and with David Cameron stepping down by October we are currently in search of a new leader.
There are now 2 choices either Teresa May or Andrea Leadsom and until we get some form of certainty this is likely to cause volatility for the Pound.
Bank of England governor Mark Carney has suggested that we could see an interest rate cut in the near future or even further Quantitative Easing and both of these if implemented could also cause Sterling weakness and this would cause confidence in the Pound to fall.
Sterling is at its lowest level against the US Dollar since 1985 and although we saw a minor fight back for the Pound during today’s trading session I think any gains will be short lived.
One event coming out tomorrow will be US non-farm payroll data and this could cause volatility across the currency markets if the data comes out very differently.
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 [email protected]
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