Sterling exchange rates are currently trading towards the lower end of their current ranges in most cases.
It’s been quite a difficult year for Sterling so far, which is understandable when we consider how Brexit transitional talks are expected to be agreed shortly but as of yet we have no news.
There is an EU summit in Brussels on the 22/23rd of this month and the arrangements surrounding the transitional agreement between the UK and the EU is expected to be arranged by then. Should there be no movement despite a number of keys talks taking place this month both between UK-EU negotiators and the Conservative party behind closed doors, I think we could see Sterling hit new lows against most major currency pairs. GBP/EUR is already close to consolidating in the 1.11’s and GBP/USD is also below 1.40 now.
Over the past week talk of the UK’s financial services sector being relocated has heated up, and owing to the fact that the UK’s financial services surplus with the EU is greater than £20bn I’m expecting to see this topic continue to be discussed. Should there be concerns from major institutions regarding the lack of clarity over the UK’s position post Brexit, I think that we could see the Pound lose value.
If you would like to be notified in the event of GBP spiking suddenly in either direction, do feel free to register your interest with me.
Tomorrow morning there will be economic news releases in the form of Industrial and Manufacturing Production figures, with both releases at 9.30am. Improvements are expected on the previous figures but do expect to see the Pound soften if the data disappoints.
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 firstname.lastname@example.org and I will endeavour to get back to you as soon as I can.