The pound to US dollar exchange rate has provided lots of volatility in 2019, and we could see some significant movements up ahead as we learn of more final news on Brexit which will provide further clarity.
Buying US dollars with £250,000 today could purchase you close to an extra $15,000 compared to the lows of 1.25 on the interbank pound to US dollar exchange rate at the beginning of the year.
Brexit news affects pound to US dollar exchange rate
Overnight, crucial news on the next steps on Brexit have seen the GBP/USD pair slipping into the 1.30’s, with some predicting we could see 1.25 again should no-deal become a very real possibility.
Theresa May has so far failed to get the backing of her Brexit deal and the extension allowed by the EU will see a short term passage to the 12th April or 22nd May depending on how the votes go next week.
12th April is when a no-deal Brexit would become a possibility, 22nd May for the UK to leave if MP’s have passed her Brexit deal. Clients looking to buy or sell GBPUSD should be preparing for a bumpy ride ahead as the market scrambles to assess which direction events will take.
Will GBP/USD rise or fall next week?
Pound to US dollar exchange rates have other events to be taking consideration of, including the commentary this week from the US Federal Reserve that they will not be raising interest rates this week.
Clients looking to buy US dollars with pounds should not rely too much on this good news, we could quite easily see the pound losing steam and this would see GBP/USD levels losing ground. Plus, there has been optimism that the US will come to some kind of agreement over the Trade Wars which will help the US dollar to rise.
If you have a GBP/USD transfer to consider and wish to run through the options and the current forecast, please contact me, Jonathan to discuss the market and your options using the form below.