Tomorrow UK Chancellor Philip Hammond will provide the Autumn budget, which could provide considerable volatility for sterling exchange rates. UK Prime Minister Theresa May is under severe pressure at the moment because of the Brexit negotiations and members of the Conservative party resigning in recent weeks.
At the last budget the Chancellor quite simply got it all wrong. He attempted to raise national insurance for the self employed and shortly after was forced to scrap the idea which provided an opportunity for clients purchasing sterling with a foreign currency. With Theresa May’s party appearing to be losing popularity I wouldn’t be surprised to see the Chancellor target the younger voter. Reports are suggesting housing and rail fairs are the key areas that could be changed.
Depending on how the markets accept the budget I expect approximately 1% movement either way.
In other news the EU set the UK a 2 week ultimatum on the 10th of November, which gives the UK 3 days to provide clarity on three key topics (divorce settlement bill, EU citizens rights and Irish border). This is the event that I believe could cause the most volatility this week. Trying to predict Brexit negtitions have proved very difficult, which has prompted many of my clients to purchase now and not gamble on the release.
It’s crucial when buying or selling the pound to analyse both the currencies you will be trading, as your 2nd currency will also have an impact on your decision. Feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF, GBPEUR etc) the reason for your conversion (company invoice, buying a property), timescales and I will email you with my forecast for the currency pair and the process of using our company firstname.lastname@example.org. Dayle Littlejohn
** If you are already using a brokerage, especially online platforms, but would like a comparison and my help with timings (this is where you can make further savings), I am more than happy to do this for you. Feel free to email me the currency pair you are trading and the volume and I will respond with the live price **