As we head into 2018, those clients holding Sterling will be questioning how the Pound will fare over the coming months.
Sterling found life tough going for much of last year, as stagnant Brexit negotiations and a divided government handicapped any major advances.
Investor confidence in the UK economy evaporated as quick as its growth forecasts shrank. Many analysts were predicting a fall towards parity against the EUR and below 1.20 against the USD.
However, as is often the case with the currency markets, conditions altered and market perception improved slightly as 2017 came towards a close.
The the Pound found some much needed support, as a breakthrough in Brexit talks helped to alleviate some pressure. Whilst there are still many unanswered questions in terms of how the UK economy will look following out separation from the EU, the outlook is slightly more positive as we head into the first quarter of this year.
This new found optimism has been supported by some strong Manufacturing data (this accounts for 10% of the UK’s economic output) and the hope now is that the Pound has at least found a stronger foothold against the other major currencies.
Despite this slight upturn, I still feel that sterling will struggle to make an aggressive impact against the EUR or USD this year, with investors remaining sceptical regarding how the next phase of Brexit talks will progress.
Brexit has been and will be the driving force behind investor confidence in the UK and ultimately the Pound, so any improvements or downturn in these is likely to have a significant impact on Sterling’s value over the coming weeks & months.
If you have an upcoming Sterling currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.