How will sterling perform for the rest of January?

How will the UK election shape GBP/EUR?

The pound has begun 2018 on a high feeding from the better news surrounding Brexit. Month’s of negotiation and uncertainty was rewarded in December with the withdrawal agreement setting out the terms of the UK’s withdrawal. What happens next is anyone’s guess as we await key talks on the trade deal the UK will receive plus a finalisation of the transition deal. History tells us such negotiations rarely go smoothly!

If you have a transfer buying or selling the pound then the next few weeks will provide some much-needed information on the direction for sterling. Personally, I don’t believe the good mood will last and surely it is only a matter of time before sterling slips up. The next key news for sterling is next week’s Unemployment data which could see the pound move by up to a cent in either direction depending on the news.

Such information is generally quickly absorbed by the markets and we can see the market moving very quickly as the market digests the news. Getting the most for your transfer is greatly aided by being able to react quickly, part of my job is to look after clients looking to buy or sell currency and offer practical support with the actual timing of any exchange. A small difference in the rate for both buyers and sellers on a large volume can be hundreds or thousands of pounds difference.

Sterling will also be sensitive to global developments. If you are looking to buy or sell the pound key information in January will be next week’s ECB (European Central Bank) decision and also the US Federal Reserve decision too. This will be the following week. Both releases are predicted to be volatile, particularly the ECB decision since the market does not quite know which direction the ECB will be looking in the future.

If you are looking to make a currency exchange in the future we can offer support and information on the markets to help you make an informed choice about the best way forward. We offer a personal service to give you as much information as you will need, we can also undercut the rates of exchange offered by other companies – checking your rate with us costs nothing and it is very rare we would be beaten on price.

Thank you for reading and for more information please contact me Jonathan Watson on [email protected]