The latest Brexit plans have been released by the UK Government which has seen the Pound fall as the prospect of a no-deal Brexit looms large. The currency market has fallen as investors brace themselves for the no-deal which could easily see the Pound losing much ground in the future.
Advice from the Government centres around businesses employing a customs operator and expats preparing for increased costs and charges for moving money internationally. Such concerns alongside the general demise of Sterling this month paints a very negative picture that could see real problems for clients selling pounds to buy Euros.
Clients looking to buy Euros with Pounds have no significant data to watch out for today but could find that the continued fallout from the no-deal chatter drags down the Pound. Expectations for the Pound are mainly centred towards Brexit and the prospect of no firm news for many weeks or months.
October is being penciled in as the date when we might finally learn some concrete information relating to Brexit but even then, some Government ministers have suggested it could be the year end that this comes to fruition. There is nothing like a deadline to focus attention and the lack of urgency is allowing the Pound to drift.
If you are a Sterling holder and wish for the Pound to rise, you need to ask yourself what you think will make the currency rise? The only thing apparently which will make the Pound rise will be good news on Brexit and so far, this has not been very forthcoming.
Just like the Government is giving advice to citizens and business on how to prepare for a no-deal Brexit, so too does it seem sensible for clients with a GBP requirement to be making some firm plans about a worst-case situation for the Pound.
For more information please contact me, Jonathan Watson directly on firstname.lastname@example.org, I’ll be more than happy to discuss how the above factors could continue to impact GBPEUR exchange rates.