There is an expectation that the next few weeks will continue to be a very volatile time in the currency markets as we await the final outcomes from Brexit and what we might expect ahead. GBPUSD interbank rates have been back in the lower 1.30’s as sterling struggles to make progress ahead of a potential crunch time in the markets.
The latest news on whether pound to US dollar exchange rates will rise or fall links to the ongoing news on Brexit, the current situation is that Mrs May is still trying to get her deal through Parliament and this will largely depend on support from the Democratic Unionist Party (DUP). It’s understood that the DUP are highly unlikely to support the deal which means it is unlikley to pass.
Clients with a position to buy or sell US dollars in the future might do well to prepare themselves for sudden twists and turns in the market as investors try to gauge what lies ahead for them.
Expectations for the pound will continue to centre around Brexit, whilst on the US dollar we are looking more closely at the developments in the US economy and also the Trade Wars. There is a growing belief that there could be some kind of agreement reached soon with Beijing although these talks have been notorious for appearing to be on the cusp of of a resolution only to fail at the last hurdle.
There is a growing expectation that in the future the pound could rise further against the US dollar if the more soft Brexit options continue to be discussed, clients looking to buy or sell US dollars might in the future see sterling rise if some of these options come to reality.
Today is the date that was originally set to be the Brexit deadline, but now the 12th April and the 22nd May are the next key dates. One thing seems for sure: Brexit is not likely to become any less important for GBPUSD rates, until a resolution is reached.
If you have a requirement to buy or sell currency in the future please get in touch with our expert team to discuss what lies ahead and how best to time your transfers during times of uncertainty such as this.