Tomorrow UK Prime Minster Theresa May will be making her case that the UK are leaving the customs union, even though the House of Lords last week voted in favour of remaining. The PM is stuck between a rock and a hard place as she continues with her stance that she the UK public have spoken and therefore the UK will leave the EU and therefore the customs union, but at the same time she wants the Irish border to remain as a soft border, which quite simply is impossible. The EU continue to describe it ‘as having your cake and eating it’.
The pound has had a good run in general over the last 8 weeks against most major currencies and some pairings reached pre Brexit levels. Over the last week the Brexit story coupled with interest rates not being hiked in May has put pressure back on the pound and I expect this trend will continue in the months to come. For clients buying a foreign currency now is the time to get in touch to talk about your currency pair as now maybe the time to convert. My direct email is [email protected].
For example, the Euro is under pressure at the moment as global events such as trade wars could potentially force the EU to extend the QE program after 2018 and for the first time Theresa May and Macron are not singing off the same hymn sheet in regards to EU reforms. However these events I don’t think will have a major impact short term but potentially may longer term.
Where as I would have a different strategy if I were buying US dollars. Trade wars, NAFTA negotiations and the price of oil continue to put pressure on the US dollar as Donald Trump continues to take to his twitter account to comment. Therefore I would wait if buying US dollars and try to trade when the pound reaches it’s resistance level against the US dollar.
For more information on exchange rates and pricing, feel free to email me on [email protected] and together we can compare the rates you are receiving from your current provider.