Brexit related politics likely to be the biggest driver of GBP exchange rates next week

Sterling dropped in value yesterday after the latest Brexit related announcement was made.

There are conflicting opinions within the Conservative government as to whether or not there should be a open ended period of time that the UK remains a part of the Customs Union, should a deal not be in place by March of next year as planned.

The topic is heated to the extent that the current Brexit Secretary, David Davis had been rumoured to plan to step down if he didn’t get his way on this. He wanted there to be a time limit on how long the UK would remain part of the Customs Union if there is no plan in place, so based on yesterday’s market movement his plans aren’t favoured by the markets.

Next week there will be discussions amongst British lawmakers regarding the Brexit Bill and the amendments to it proposed by the house of lords recently. I expect this topic to have the potential to move markets depending on what’s confirmed. At the moment Brexit related news appears to be the biggest mover of the Pounds value, especially now that the interest rate hike from the BoE is likely to be pushed back towards the end of the year.

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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 jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.