The Pound was jumped up and down yesterday severely against all major currencies, particularly on buying Canadian Dollar exchange rates.
Volumes of news was being released at the time from this side of the channel, and this was exaggerated as well by the ripple effects from the OPEC meeting earlier this week.
The Pound bounded upwards rapidly yesterday morning following the softening tone of the men spearheading the Brexit negotiations in regards to some key features pertinent to financial markets.
Firstly , Boris Johnson, the Foreign Secretary, detailed to ambassadors that he was ‘all for the free movement of people’. Painting a stark contrast to Boris’s campaign rhetoric for the Leave campaign, but also showing a degree of leniency on what is a cornerstone feature in accessing the European single market.
Secondly, David David, the Secretary for Exiting the European Union, stated that it was quite likely that the UK will end up paying for access to the European single market following its eventual disentanglement from the European Union. Again presenting the picture of a softer Brexit compared to the harder picture Theresa May and her peers were presenting to markets previously.
The Pound surged from this double market mover, but we were once more presented with just how much hypersensitivity is present in the marketplace. The gains made by the Pound evaporated rapidly with profit taking from such severe movements, coupled with the greater confidence in the Canadian Dollar following the release of the latest OPEC meeting stating that they would finally cut production to meet demand, GBP/CAD is back to where we began the week.
In such a volatile market it is imperative that you are kept up to date with new forecasts, and as such I offer a proactive service to meet such demands on behalf of my customers. You can reach me on [email protected] to discuss a strategy for your transfer aimed at maximising your currency return.