The pound has continued to climb against the Dollar in trading this week as both parties involved in Brexit negotiations appear to be compromising and closing in on an agreement to be put in place sooner than many analysts had originally thought.
We have an EU summit based on Brexit due next Thursday and Friday and until a week or so ago it had been thought that a deal would not be reached before the end of that, leading to uncertainty for the Pound and an emergency EU summit being pencilled in for November.
Current signs are that a deal could be announced next week. With these bits of news coming out on the wires this has led to the uncertainty that had been hanging over the head of the Pound being lifted and Sterling exchange rates have burst back through 1.30 and up to 1.32+ as a result of this.
Next week is of high importance for those looking to carry out any exchange involving GBP or USD, as it is likely that we will have a lot of volatility for the Pound as and when announcements are made or rumours start to circulate.
Should we have an announcement that is positive about a deal then it is likely that Sterling will rise further against the Dollar and a rate of 1.35+ could not be ruled out. Be wary that on the flip side if we do not get a deal agreed then GBP/USD rates could equally tumble back below 1.30.
Even with a deal provisionally agreed there is still a chance of Sterling dropping back off again later down the line, the deal still needs to be agreed by Parliament and in the lead up to this vote I would expect Sterling to get extremely shaky again.
All in all we have an exceptionally busy period ahead so if you have an exchange to carry out in the near future then it is key you have an efficient and proactive broker on your side to inform you of any movements in your favour or against you.
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