The Pound is currently sat up in the 1.32s against the Dollar as investors and speculators appear to have a new found confidence in Sterling.
This week will be another important week for anyone looking to buy or sell Pounds with a foreign currency, as it is likely to be another one with great volatility.
Politics will most likely once again be the main driver for Sterling exchange rates and this does make rate predictions somewhat difficult to say the least.
Will Theresa May get her Brexit deal through this week?
Over the weekend there were reports that Theresa May is making progress in her negotiations with the DUP regarding her deal. Should news break that she has got them on side then we may see the Pound have another strong week.
The reason behind this is that it would most likely mean that a Brexit deal could go through, or at least be agreed before the end of the month.
A number of MPs over the weekend have said that they will hold their nose and hope for the best and vote in favour of Theresa May’s deal if the DUP come on side and although it is likely that we would still require an extension to make the deal happen, it shouldn’t be as long as the two year extension that is currently being suggested as an alternative.
On the flip side of this Theresa May has also confirmed that she will not go ahead with her 3rd vote unless she is totally confident of winning it, a third loss for the Prime Minister would put her position under extreme stress and it would be hard for her to continue as she is.
We also need to consider that if the vote does not go ahead and the EU do not accept our request of an extension then a ‘no deal’ Brexit is not totally unavoidable. This could lead to the Pound dropping off considerably too.
All in all this will be an interesting week for exchange rates and my personal hunch is that I would not be overly surprised to see Theresa May get the deals done that she needs to and to have a vote that is successful, which could lead to another strong week for the Pound. It may even lead it up to the mid 1.30s if that is what ends up happening.
If you need to buy or sell Dollars, or any currency pegged to the Dollar then it would be well worth getting in contact with us here at Pound Sterling Forecast. We can help you both in terms of market knowledge and getting the best rate of exchange when you do decide to proceed with an exchange.
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