This morning the Supreme Court dismissed the governments appeal and stated Parliament must give its approval before UK Prime Minister Theresa May can invoke Article50 of the Lisbon treaty. Surprisingly the pound lost momentum against most of the major currencies and was the worse performing currency when writing this article.
Many economists and national newspapers predicted the decision therefore the decision itself had already been priced into the market. The Government responded immediately and confirmed they have drafted plans to propose to MPs and these plans will be fast tracked through Parliament so a decision can be made sooner rather than later.
There are some MPs that plan to delay Brexit but its key to note they are heavily outnumbered. With the information we have received today I expect a decision to be made by MPs very soon.
If you rewind 4 months when the Great British Public were under the impression the UK were leaving the EU and single market, sterling was at its lowest point in many years. Therefore if MPs reach a decision in the upcoming weeks, the consensus on the trading floor is that exchange rates will fall back to the lows we became accustom to in October.
For people purchasing a foreign currency within the next 12 months today is the day I recommend to get in touch. Its important to analyse the other currency you are transferring as their may be spikes in the market you wish to wait for, however I expect the pound to devalue in the upcoming months therefore purchasing currency now for future transfers, is a safe option.
For example, for euro buyers, if central levels of exchange fall to 1.10 (rates in October 2016) compared to central levels now which are 1.16, the difference on a £200,000 transfer is €12,000!
Many of my clients until we speak do not realise they have many options available to them. For example if you are purchasing a property abroad and you are waiting for your property to sell in the UK, you can use a forward contract which allows you to lock into exchange rates now and you pay later.
Feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF etc) the reason for your conversion (company invoice, buying a property) and I will email you with my forecast for the currency pair and the process of using our company firstname.lastname@example.org.
For the readers reference the company I work for on a daily basis save clients money on currency transfers. If you are planning a transfer and are using your bank or another brokerage, I would reccomend getting in touch for a forecast and at the same time compare of exchange rates. This is free of charge and will take you a few minutes.