Brexit debate weighs on the Pound’s value

The pound has had a torrid time in recent weeks, with GBPUSD exchange rates falling 7 1/2 cents. To put this into monetary terms a £200,000 transfer into US dollars achieves clients $15,000 (5.15%) less.

Many of my clients took advantage of the fantastic rates we were achieving in early March as I thought it was only a matter of time until the Brexit negotiations would put pressure on the pound. At the moment the Conservative party are split down the middle in regards to the customs union, however the EU want progress.

In recent times a “customs partnership” in which the UK would collect tariffs on behalf of the EU has been discussed and on paper seems like an idea up for debate, however it would limit future trade relationship with other countries outside the EU which Eurosceptic MPs are not happy about. Furthermore MPs sent a 60 page document to the PM yesterday addressing their concerns and some analysts are suggesting this could even collapse the Government if the Prime Minister plays the wrong card.

Brexiters have told the PM they would prefer ‘trusted traders’ to be able to free roam which eliminates the Irish border problem, but again the EU so far haven’t agreed to this. Its being named the ‘max fac’.

My personal opinion is that there are further falls on the horizon for the pound due to the Brexit negotiations and the recent poor run of UK economic data, and  it wont be long until the pound is back to levels we become accustom to last year. For clients that are buying a foreign currency and did not take advantage last month, I would bite the bullet and make arrangements.

However it’s important when buying or selling the pound to analyse both the currencies you will be trading, as your 2nd currency will also have an impact on your decision. Feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF, GBPEUR etc) the reason for your conversion (company invoice, buying a property), timescales and I will email you with my forecast for the currency pair and the process of using our company [email protected]. Dayle Littlejohn

** If you are already using a brokerage, especially online platforms, but would like a comparison and my help with timings (this is where you can make further savings), I am more than happy to do this for you. Feel free to email me the currency pair you are trading and the volume and I will respond with the live price **