The Pound has had one of the best weeks seen since the referendum, making gains against all major currencies as Sterling has come well and truly back into fashion, well at least for the time being!
Investors and speculators have found an increased demand for Sterling and this has given the Pound a welcome boost for those looking to buy property overseas or for business owners that buy their stock in foreign currency.
The main reason behind the rise appears to be positive vibes around the city that it is now highly unlikely that the UK will walk the plank with a ‘no deal’ Brexit and it appears that any of the other avenues seem to be leading to Sterling strength.
We now have a key 2 weeks ahead for the UK and indeed for Sterling exchange rates. I would personally expect a lot of market volatility during this period, which way depends on how the situation for Theresa May pans out but if I had to predict myself I would not be surprised to see a little more Sterling strength.
Having worked in the currency markets for over 11 years now though nothing surprises me and the markets often tend to ‘swim against the tide’ and do everything that they can to prove the majority wrong, so there could still be situations ahead that cause the Pound to come under pressure too.
If you have a large transfer pending then it is important to consider all of the options available to you, there are various contract types that you can take advantage of to try and protect yourself from adverse market movements.
My personal opinion on any situation like this is that it is key to hedge your risk and to protect yourself, even if you do not move to book out all of your currency the sensible approach is to ensure that you lock some of your requirement in while the Pound is at multi-month and in some cases multi-year highs.
If you have the need to exchange currency in the near future and you would like to speak to me directly then you are welcome to get in touch by filling in the form below and I will be happy to get in touch with you personally.