After facing an increasing amount of pressure throughout October, the Pound is under less downward pressure this afternoon after some positive comments from a Brexit minister.
At the time of writing Sterling is up against every major currency pair, and the reason behind the positive move is down to comments from junior Brexit minister David Jones, who suggested that any UK-EU treaty would be debated by parliament which is Sterling positive news as parliament is generally considered to be favouring a ‘Soft Brexit’.
By ‘Soft Brexit’ financial markets are referring to a long drawn out period of negotiations between the UK and EU whereby the UK retains access to the single market.
Those planning on making a currency conversion involving the Pound and another major currency, will need to be aware of how talk of a ‘Hard Brexit’ can negatively impact the Pound’s value. Earlier in the month a number of key public European figures such as Francois Hollande and Donald Tusk outlined their own ‘Hard Brexit” stance, and their comments sent the Pound downward.
Their comments added fuel to the fire after UK Prime Minister, Theresa May announced that the ‘Brexit’ initiation process will begin in March of next year.
Today’s Sterling positive comments have pushed the Pound up to a two-day high, and personally I think this has created a good opportunity for Sterling sellers as numerous financial institutions have predictions of a weaker Pound next year, with HSBC outlining GBP/EUR parity at the end of 2017 being one of the stand out predictions.
Tomorrow’s UK GDP Figures at 9.30am could further boost the Pound if the figure beats expectations, and feel free to get in touch if you wish to discuss this news event and the potential outcomes.
If you are planning a currency conversion involving the Pound and another major currency, it’s worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.
You can also call in directly on 01494 787 478, just ask reception for Joe.