Sterling exchange rates have enjoyed the best trading day witnessed in a while, seeing a surge in value against most major currencies, notably with interbank exchange rates going above 1.12 against euro and also breaching the best rates witnessed against the dollar since early September.
It is thought that due to the success noted by Pfizer yesterday that this having a positive impact on the value of sterling, firstly the U.K Government has good access to the vaccine and already has provisions in place to progress with a large volume of it should it start to be rolled out, secondly it is thought that the U.K is well positioned to benefit most from the vaccine, so the U.K economy may be able to come out of the traps quickly and start to gain the benefits of the U.K economy coming out of the traps sooner than other economies around the world.
On top of this, the U.K stock market has started to surge off the back of the vaccine and with a lot of the U.K stock market investment coming from overseas this has led to an increase in demand for the pound, with the age old rule of supply and demand this has meant that the value to the pound has increased in line with the larger demand.
Brexit Talks in Final Week
We must not forget that we are once again (without sounding like a broken record) in what has been deemed as the final week for Brexit talks.
Both sides have suggested that should an agreement not have been reached by 16th November then it will be far too tight to get all of the necessary completed in time for the Brexit deadline of 31st December where the U.K will officially leave the EU, deal or no deal.
This is likely to cause further volatility throughout the week as any increased likelihood of a deal may give the pound a further boost and a drop in sentiment for a deal happening or should talks fall through then sterling exchange rates could find that they drop back off again and lose value.
This has been the same pattern for quite some time now, and we have seen a number of deadlines not be met only for another to be created, but the clock is well and truly ticking now so you would think that no progress once again could start the beginning of the end of the chance of an official UK/EU trade deal.
What Should I do if I Have a Currency Exchange Coming up?
If you have a large currency exchange coming up either for yourself personally or your business, then a lot really depends on your individual situation and your approach to risk, as we could be in for a fairly volatile few days, weeks and months depending on the outcomes of the above.
There are options available, you can lock in currency in advance, you can set official market orders to buy or sell at a specific rate or you can hedge your risk and split your requirement into various chunks.
Whatever your plans it really is key to have a proactive and efficient currency broker on your side and this is where we can step in and help. Not only can we act as your eyes and ears on the market but we can get in touch the second an opportunity arises, this can prove invaluable in circumstances and market like this.
Feel free to get in touch with us by filling in the form below and we will be happy to discuss your specific situation with you personally.