The pound has enjoyed a period of strength in the last two months as investors bets on the Bank of England raising interest rates hit the right notes. Markets have been pricing in this expectation and in true currency market form, the market over bought on the news. Sterling immediately fell following the new as it became apparent that the path to future hikes was less strong than the market had been led to believe. Sterling is now back at the mercy of the UK’s economic conditions and political sentiments over Brexit.
I think the pound is going to remain at risk of further falls as the good news outweighs the bad for investors eyeing up potential investments. With the shadow of Brexit looming large and the UK government pressing the self destruct button on a daily basis, investors should be fearful about what lies around the corner. Have we seen the worst of the negative influences and effects from Brexit? Probably not…
We are loosely at the halfway point since the vote and between the end of the Article 50 period. it has been 1 year and 5 months since the vote and it is another 1 year and 5 months before March 2019 when the UK will officially have left. If you have a transfer to make in the coming weeks, months and year making plans in advance is well worth it since there are clearly plenty of twists and turns ahead.
The pound has been making improvements lately but can these last and progress? I just cannot see it and I think clients buying a foreign currency with the pound should be making some plans sooner than later about what they hope next to be achieving. Just sitting back and waiting for magic to happen is not the best strategy on a large volume currency transfer!
For more information on the right strategy and plans to manage your currency exchange please feel free to contact myself Jonathan Watson by emailing email@example.com
Thank you for reading and we look forward to hearing from you.