The pound has seen an excellent day across the board creating lots of opportunities for those clients looking to buy other currencies. Bank of England Governor Mark Carney surprised the markets this afternoon when he stated that there may need to be some removal of monetary policy. Rates for GBP USD saw an excellent spike in excess of 1% and taking levels back over 1.29 for this pair. GBP EUR has been more muted although ECB President Mario Draghi’s comments have created some uncertainty for Euro exchange rates after some backtracking on comments earlier in the week.
Thursday however sees the vote on the Queens speech which should see additional volatility for the pound. This speech should conclude the general election flop almost three weeks ago and the pound could fine some renewed support on the back of it, assuming it all goes through. There could be political fireworks though considering Labour leader Jeremy Corbyn is looking to make an amendment to the Queens speech and will try and vote it down.
Realistically though the UK Prime Minister Theresa May should find the support she needs with the backing of the Democratic Unionist Party (DUP). In this outcome the pound in my view should see a rally as a degree of confidence is restored after the hung parliament. Those clients looking to move out of sterling could see some excellent buy opportunities. Please get in touch and we can try to help time any future currency exchanges. Developments from Westminster should see a material gain for the pound and considering GBP AUD has broken 1.70 once again there may be more room in this rally.
Those clients selling Euros or Australian dollars in particular may wish to consider taking the risk out of the volatile currency markets.
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]