The Pound traded in quite a volatile fashion yesterday after a number of mixed messages were sent by key Brexit personnel.
The end of the 5th round of Brexit negotiations lead the UK’s Brexit Secretary, David Davis to offer his views on how negotiations are going so far, and he was fairly upbeat. This was in contrast with his European counterpart, Michel Barnier who in contrast appears frustrated at how the talks are progressing, and this lead the Pound to fall.
The International Monetary Funds managing director, Christine Lagarde also gave her opinion regarding Brexit, and said that there needs to be further clarity regarding the UK’s position, and that a ‘No Deal’ Brexit is unthinkable. The reason for her comments are likely due to the fact that talk of a ‘No Deal’ Brexit has been in the UK news headlines this week after both UK Prime Minister Theresa May and the Chancellor of the Exchequer, Philip Hammond have both commented on this potential outcome this week.
There is no major economic data out of the UK before the weekend, and the situation out of Canada is the same so I expect the GBP/CAD rate to be driven by sentiment in the same fashion as yesterday.
In the current market its very difficult to judge which way the market will move next, but being on a trading floor means that we’re able to react quickly to short term moves. There are also trading options whereby you can set up automatic orders to trade at your preferred level, which can be a useful tool in the current market.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.