The pound has been on a gentle path higher since August 2017 when we reached some of the lower points since Brexit. This was most clear against the Euro where GBPEUR dropped to 1.075 testing 8-year lows but GBPAUD retested very close to the 5-year lows of 1.60-1.61. GBPUSD was fairly close to current levels but that is explained more by US dollar movements than the pound.
At this time it was the prospect of a no deal on Brexit which drove the rates lower with no clear sight or path ahead for things to get better. The significant change since then has been the significant progress on Brexit with both the withdrawal agreement in place and terms of a transition also finalised. There are still unanswered questions over exactly what any future trade deal will look like but we are pointing in a much more favourable direction.
If you are looking to make a currency transfer involving the pound the timing is crucial since 1 cent in either direction on a large amount of money can be thousands of pounds difference. With rates changing every second and sometimes many cents in the space of a week or a month getting the timing right could save you thousands.
This month there is lots of key data and the important thing for me is whether or not this continued optimism is warranted or not. We will get further clues on both the UK economy and also Brexit this month, principally the next Bank of England decision on the 21st June and the next EU Summit on the 28th.
Waiting for these dates might not be the best strategy as with exchange rates it usually pays to be getting everything setup in advance to minimise your risk and maximise your opportunity to take advantage of any good news. Exchange rates fluctuate by the second and we aim to guide our clients through the potential opportunities with our expert knowledge.
If you have a currency exchange to make in the future and wish to try and maximise it then why not speak to one of our team? There is no cost or charge for our services and any information is provided free of charge and completely no obligation.
Thank you for reading and I look forward to hearing from you, please contact me Jonathan Watson by emailing [email protected]