The pound has seen very mixed signals across the major currencies as we end the week. GBP EUR has fallen today after a volatile week which has seen very high inflation and strong retail sales numbers. GBP USD has seen another good day with rates breaking back over 1.30 again for this pair. The dollar could be in for period of further weakness as developments unfold over the appointment of Richard Mueller, the former FBI director investigating the links between Russia and the Trump campaign as well as the recent firing of the last FBI director James Comey.
With the general election looming the pound could see some weakness as we approach 8th June as uncertainty usually sets in. The risk for those clients selling Euros or selling dollars for example is that the pound may rally after the general election if there is a strong conservative majority.
Clients looking to sell currency and buy sterling would be wise to get in touch and consider making the conversion prior to the election. A rally is likely for the pound if the Conservative party perform particularly well in this election as this will signal a stable government for the next five years which the markets should receive as welcome news.
Sterling exchange rates however are unlikely to strengthen too much considering the task of Brexit still needs to be dealt with. With the German election another four months away, this means that there is unlikely to be much clarity offered until then. Germany will ultimately end up plugging the hole that Britain leavesAny real progression in the negotiations is more likely to be seen after the German election
If you would like further information on Sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]