The Pound has performed extremely well today against all major currencies, a sentence I have rarely had the chance to write in recent months.
There were two reasons for this spike in the markets:
- A high court ruling that Parliament must vote on whether the U.K can start the process of leaving the EU.
- The Bank of England voted 9-0 for no interest rate cut
The ruling by the court will no doubt give Theresa May a sleepless few nights as now the Government cannot trigger article 50 on its own and would need the backing of Parliament for this to go ahead. According to reports they plan to appeal this and we expect a further hearing next month.
What this means is that the slim chance of Brexit not happening has increased, or if it does happen there is a higher chance of what is known as a ‘softer brexit’.
On top of this, the Bank of England made no changes to interest rates and in fact all nine members voted against any change to interest rates which also gave Sterling exchange rates a welcome boost.
An interest rate cut is generally seen as negative for the currency concerned and a hike in rates positive so the fact that a cut now appears to be some way away is why the Pound gathered some strength back.
Mark Carney spoke later in the afternoon which dampened exchange rates a little but all in all this was a good day for anyone looking to buy foreign currency.
If you are in the position where you need to transfer any sum of £10,000 overseas for your business or a foreign property purchase, or indeed you are bringing money back to the U.K for a property sale feel free to contact me (Daniel Wright) by emailing [email protected] and I will be more than happy to help guide you through this interesting market and assist you with your exchange at extremely competitive rates of exchange too.