Since the UK public voted out of the EU, a cloud of uncertainty has surrounded the UK economy and therefore sterling exchange rates. Many economists stated it was doom and gloom and that the UK would enter recession by Christmas. Some of the leading banks including HSBC exclaimed they thought GBPEUR would reach parity before the end of the year!
So far it seems as this is a slight overreaction. In fact UK retail sales and Unemployment numbers have exceeded expectation and exports are flying out of the UK because of the cheap pound. The golden question now is what next?
We have to remember the UK did cut interest rates this month and are now pumping a large amount of quantitative easing into the economy, which overtime should devalue sterling. Looking ahead there is still a chance the pound could devalue further if the Bank of England cut interest rates to 0%. In addition I still believe there will be a slowdown in the UK and therefore we will see a decline in sterling rates.
HOWEVER its important when trading sterling with a foreign currency that you analyse both currencies.
Are you buying euros for a property purchase in Europe? Are you selling US dollars to buy sterling because you get paid in dollars? Have you received inheritance in sterling however you live in Australia? Each scenario I would have a different strategy that I believe would maximise your return. Therefore its important I have a deep understanding of your requirements so I can help you!
My area of expertise is property purchases and sales. Therefore if you need to purchase a foreign currency or you are about to complete on a sale abroad, today is the day to get in touch to discuss your options and to get an understanding of how we can save you as much money as possible.
Feel free to email me on email@example.com or alternatively fill out the form below.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **
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