Sterling has made huge gains against the Euro during the course of the week since it was announced that Donald Trump will be the next President of the United States of America. With many leaders across Europe rather outspoken against Trump our very own Prime Minister has been rather more diplomatic speaking out and congratulating Trump and focusing on own strong historical ties with the US.
This had led the Pound to gain against all major currencies including the biggest weekly gain against the Euro in over 5 years!
The US is the single biggest nation that we trade with with over 6% of our GDP exported to the US or the equivalent of USD$51bn last year.
Previously Obama has stated that the UK will go to ‘back of the line’ when it comes to negotiating trade deals with the UK if it votes to leave the European Union. However, as Trump has business interests in the UK and with his support of the Brexit him coming in could indeed improve trade relations between the US and the UK.
This is why we have seen such big gains for the Pound this week since the elections result.
During 2016 it appears as though the voice of anti-establishment is rising with the UK voting for Brexit, Trump winning and the Italians holding their own referendum next month. The change is apparent via outlets such as social media and with the French and Germans due to hold their own elections next year we could see a change in leadership in both European nations in 2017.
The gains this week for Sterling exchange rates have been rapid and could continue but the issue of Article 50 has not gone away yet and the challenge will take place in the first week of December but we may not have the answer until January which could delay the negotiations even further.
In order to take advantage of these recent spikes if you’re worried about the uncertainty ahead and need to make a currency transfer before the end of the year it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the foreign exchange industry since 2003 I am confident not only of offering you better exchange rates compared to using your own bank when buying or selling currency but also help you with the timing.
If you have a currency transfer to make and would like further information or for a free quote then contact me directly and I look forward t hearing from you.
Tom Holian [email protected]
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